The tech industry is downsizing its office footprint. It started with the post-pandemic ending of the tech boom and the swath of layoffs that came with it. In the face of economic uncertainty, these companies have been looking for ways to cut back on expenses, and giving up office space left vacant by job cuts and remote and hybrid work schedules has become a regular occurrence.
In the first quarter of 2023, Meta Platforms listed a total of 1.8 million square feet of office space as it continued to reduce its footprint. More recently, in May, news emerged that Google would reduce its office space in California’s Silicon Valley by giving up 1.4 million square feet at a handful of buildings. Alphabet Inc., Amazon, Microsoft, Salesforce—veritably all of the tech giants have been relinquishing office square footage in tech centers across the country.
Despite the seemingly endless announcements of office downsizings among tech giants, many of the United States’ top tech hubs are faring better than the overall metropolitan markets they occupy. To better understand the office markets in the nation’s tech hubs we looked at their office vacancy rates compared to their larger metropolitan areas.
Tech HubsVacancy Rate Q1 2023Silicon Valley13.50%Silicon Alley14%Silicon Beach (Playa Vista)22.50%Source: Colliers
Metro MarketsVacancy Rate Q1 2023San Francisco Bay Area21.80%New York City18.60%Greater Los Angeles26.20%Source: Colliers
Despite the rash of office retrenchments, Silicon Valley’s vacancy rate in the first quarter of 2023 was a relatively modest 13.5 percent compared to the San Francisco Bay Area’s vacancy rate of 21.
Read more at Propmodo.