Tech Cities Report

Tech 25 vs. U.S. Markets

THE TECH 25 OVERVIEW TECH METRICS

Tech cities have outperformed... but tech markets are cooling for now

VACANCY CHANGE SINCE Q1 2016

-1.0% -0.8% -0.6% -0.4% -0.2% 0.0% 0.2% 0.4% 0.6%

Vacancy has actually ticked up in the Tech 25 recently

0.5%

-0.8%

The primary tech markets – Silicon Valley, San Francisco – have been so red hot over the past six years that any slowdown would appear negative. These markets will continue to expand but in a more sustainable fashion.

Tech 25 All Other Markets

ABSORPTION SINCE Q1 2016

24 25 26 27 28 29 30 31

30

Change in occupancy has weakened in the Tech 25 over the past year

26

Millions of square feet

Q1 2016 - Q1 2017, MSF Tech All Other Markets

Source: U.S. Bureau of Labor Statistics, Cushman & Wakefield

21