In a trend first identified in the middle of this decade, America's second cities are beginning to take first place in the office market of the 20's decade. When you look at the hottest office markets, you won't find New York, Washington DC and Chicago. Instead, you'll find a mix of quirky primary markets and many strong secondary options.
The real estate world loves Austin, Texas. Investors are pouring money into new projects there, both public and private. Major companies like Apple and Dell are expanding there. And people keep moving there for jobs. While traffic and housing prices are both edging up to worrying levels, Austin still has room to grow. With this in mind, it's likely to be a top office market in 2020 and beyond.
While Boston is one of America's largest cities, its place as a top market comes from the new ideas and businesses flowing from its uniquely capable workforce. Driven by some of the world's finest academic institutions, Boston has a diverse and highly skilled pool of workers. Whether your company is in the tech sector, in finance, in medicine, or even in textiles and apparel, Boston provides talent and related companies to help your business thrive. Even with its relatively high cost of living and expensive office space, this small market tends to be a big draw.
Possibly more than any other market in the United States, Los Angeles' strength comes from its diversity. Culturally, it coexists at the nexus of the Pacific Rim and the Americas, with a strong dose of the American Midwest buried under the palm trees and beach sand. From a real estate perspective, it offers just about any type of location, ranging from prestigious CBD skyscrapers to arts district boutique offices to suburban campuses. LA's workforce is skilled and diverse, too, producing everything from the movies that we know and love to the rockets that launch the satellites that deliver them to us.
Music City's gone high-tech. Now viewed as one of America's leading tech cities, Nashville is a rapidly growing market serving multiple industries. It has significant office job growth, coupled with rapid development of new space and, unfortunately, increasing rents. In addition, Nashville is so hot that rent and occupancy growth comes in its downtown and its suburban submarkets. Even with this growth and with the attendant challenges in terms of traffic and increasing costs of housing, Nashville remains a vibrant, affordable, and business-friendly option for your company.
Among major US markets polled as part of the recent PwC / Urban Land Institute 2020 Emerging Trends report, Raleigh / Durham, NC had the lowest rate of sell recommendations for its office space. Only 7 percent of survey respondents recommended selling office buildings in this community. Truly Silicon Valley South, the job base here has the highest percentage of tech positions in America after San Francisco and Silicon Valley. Like many other markets, a combination of great colleges, manageable size and reasonable costs of living drive its desirability.
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