Archive for September, 2016
JLL just released their report on tech trends to watch in 2017. The report tells us about office space leased and purchased by tech companies, which corresponds with tech job growth. While economic expansion in the U.S. has slowed after years of growth, the tech sector continues (and will continue) to go up – albeit a bit more slowly than before. According to JLL, here are ten of the top tech trends in real estate for the coming year.
- Tech is still the top industry for real estate expansion in the U.S., driving the economy across the country. Almost 25% of leases over 20,000 square feet being signed are for tech companies.
- Tech employment is slowing, but still growing, and in fact, growing twice as fast as employment overall.
- Tech companies are focusing on diversity, in response to research suggesting a diverse workforce results in greater innovation and financial performance.
- Seventy-two perfect of venture capitalists’ activity is from the tech industry. But it’s slowing some.
- As funds slow a bit, start-ups are growing a little slower in response.
- The slowing of funds has also resulted in start-ups becoming more cost-sensitive when it comes to real estate.
- Tech companies are looking to be acquired, since investors have tightened funding.
- Tech companies with the financial means will continue to pay top dollar for the best locations – those that attract the best talent.
- Young tech start-ups will look to establish themselves in smaller tech cities that still have strong talent.
- Silicon Valley, Boston, and New York will continue to be major tech hubs, with smaller cities gaining as major tech companies establish a presence there.
In short, even as growth slows, the high demand for tech talent continues.
People are back at work after a long Labor Day weekend – though perhaps not as many as economists had predicted. Let’s take a look at the August 2016 BLS jobs report.
1. Pay didn’t increase as much as predicted. Average hourly wages were only up .12% (3 cents) from last month, whereas last year they were up 2.4% from a year ago. According to the Wall Street Journal, this could have something to do with the fact that the lowest-paying sector – “food services and drinking places” – also added the most jobs of the month.
2. Fewer jobs were added. While 270,000 jobs were added in July, only 151,000 jobs were added in August. That’s a sharp decrease, and also less than the consensus, which had been 180,000. Still, that number is considered enough to absorb workforce growth, says bankrate.com.
3. It’s not as bad as it sounds. For some reason, possibly due to school starting, August numbers have often been disappointing. This is why economists say month-by-month reporting isn’t as reliable as year-by-year reporting. Plus, while the numbers aren’t great, they still show steady if slow growth.