Tech Cities 2022: Market Reboot: How tech CRE is adjusting to a turbulent economy

Company Approaches to RTO: Sector Comparison

Office Centric

Office Flex

Remote First

Virtual Flex

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Financial Services / Insurance

Life Sciences

Consumer Commerce

Tech

Legal

Media / Telecommnications

Professional & Business Services

More Remote-Centric

More Office-Centric

Source: Various Global Companies, Bloomberg Law reporting, The American Lawyer

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2022 Monthly Tech Layoffs

24,000

20,000

16,000

12,000

8,000

4,000

0

January 2022

February

March

April

May

June

July

August

September

October

U.S.

Non-U.S.

Source: Layoffs Tracker

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U.S. Employment

110%

105%

100%

95%

90%

85%

Jul-20

Jul-21

Jul-22

Apr-20

Oct-20

Apr-21

Oct-21

Apr-22

Oct-22

Jun-20

Jan-21

Jun-21

Jan-22

Jun-22

Mar-20

Mar-21

Mar-22

Feb-20

Feb-21

Feb-22

Nov-20

Dec-20

Nov-21

Dec-21

Aug-20

Sep-20

Aug-21

Sep-21

Aug-22

Sep-22

May-20

May-21

May-22

Office-Using Industries

High-Tech Industries

Total Non-Farm

Source: Moody’s Analytics; U.S. BLS

February 2020 = 100%

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Unique Postings – Computer Occupations

400,000

160,000

300,000

120,000

282,792

200,000

80,000

63,162

100,000

40,000

6,948 0

0

Jul 2018

Jul 2019

Jul 2020

Jul 2021

Jul 2022

Apr 2018

Oct 2018

Apr 2019

Oct 2019

Apr 2020

Oct 2020

Apr 2021

Oct 2021

Apr 2022

Oct 2022

Jan 2018

Jun 2018

Jan 2019

Jun 2019

Jan 2020

Jun 2020

Jan 2021

Jun 2021

Jan 2022

Jun 2022

Feb 2018

Mar 2018

Feb 2019

Mar 2019

Feb 2020

Mar 2020

Feb 2021

Mar 2021

Feb 2022

Mar 2022

Aug 2018

Sep 2018

Nov 2018

Dec 2018

Aug 2019

Sep 2019

Nov 2019

Dec 2019

Aug 2020

Sep 2020

Nov 2020

Dec 2020

Aug 2021

Sep 2021

Nov 2021

Dec 2021

Aug 2022

Sep 2022

May 2018

May 2019

May 2020

May 2021

May 2022

Total Unique Postings

Remote Postings (rhs)

Hybrid Postings (rhs)

Source: Lightcast

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VC Funding

$800

Global VC Funding by Region

$700

Middle East 3%

$600

Europe 18%

Canada 2%

$500

Asia 23%

South America 1% Oceania 1%

$400

$300 Billions (USD)

Africa 1%

$200

Mexico/Other North America 1%

$100

Central America 0%

United States 50%

$0

2015 2016 2017 2018 2019 2020 2021 YTD (Oct 2022)

Global VC Funding (Billions) Canada VC Funding (Billions)

U.S. VC Funding (Billions)

Source: PitchBook

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Lease Lengths Comparisons

New Leases – Term (Months)

Renewals – Term (Months)

Change = +15 months

110

80

100

70

90

60

80

50

-7

-7

-9

70

40

-3

-3

Change = - 11 months

-4

60

30

All Leases Non-Tech Big Tech Med/Small Tech

All Leases Non-Tech Big Tech Med/Small Tech

Q4 2017 - Q1 2020

Q2 2020 - Q3 2022

Q4 2017 - Q1 2020

Q2 2020 - Q3 2022

Source: Cushman & Wakefield Research

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Top Tech Leasing Markets

25

24.2

20

15

10

10.2

MSF

8.8

8.7

8.6

5

5.4

4.4

4.2

3.6

3.0

0

Silicon Valley San Francisco Manhattan

Seattle

Tyson's Corner

Boston

San Diego

Q4 2017 - Q1 2020

Source: Cushman & Wakefield Research

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CONTACT

A B O U T C U S H M A N & W A K E F I E L D

K E Y C O N T A C T S

Cushman & Wakefield (NYSE: CWK) is a leading global real estate services firm that delivers exceptional value for real estate occupiers and owners. Cushman & Wakefield is among the largest real estate services firms with approximately 50,000 employees in over 400 offices and approximately 60 countries. In 2021, the firm had revenue of $9.4 billion across core services of property, facilities and project management, leasing, capital markets, and valuation and other services. To learn more, visit www.cushmanwakefield.com or follow @CushWake on Twitter.

Jacob Albers Research Manager Global Research

Robert Sammons Senior Director Tech Research Lead

Copyright © 2022 Cushman & Wakefield. All rights reserved.

David Smith Vice President​ Global Head of Occupier Insights​

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