It’s simple to think that even the largest IT businesses are shutting down given the current state of the economy and the abundance of layoff notifications. However a pair of Savills reports suggest that is far from the reality, and that even with all the hoopla there are US CRE markets that still may expect to do pretty well.
The corporate reports of Meta, Amazon, Apple, Netflix, Alphabet, Microsoft, Tesla, Nvidia, and Advanced Micro Devices were examined by Savills. The revealing statement is as follows: “In spite of recent layoffs, average headcounts remain 66% up on pre-pandemic levels among major tech companies.”
This is as a result of the massive quantity of hiring these businesses conducted during the pandemic. Even now, with this group, the number of employees is at least 50,000 higher than at the end of 2019. Even while the majority of tech companies are not enormous and may not have prepared to the same extent, as the Wall Street Journal reported at the end of December 2022, more tech companies were hiring than were laying off employees. Furthermore, within three months of being laid off, 79% of tech companies found new employment. There is a huge need for office space as even the largest software businesses begin to mandate that employees spend at least some time in the office.
Then where? According to the company’s Savills Tech Cities 2023 report, “US cities account for more than half of the top thirty” high tech cities worldwide. San Francisco, New York, Silicon Valley, Los Angeles, Boston, Austin, Seattle, Washington, D.C., San Diego, and Raleigh are the top US metro regions for high tech. The general business climate, the tech climate individually, the city’s atmosphere and wellness, and the quantity and caliber of the talent pool were all taken into consideration while rating each location.
That is just a common viewpoint on technology. According to Savills, the rankings change depending on the specific sort of tech and the top 12 global locations for each. The top four cities for ag and food technology are New York, San Francisco, Boston, and Silicon Valley, while Chicago comes in at number five. The top US metros for climate tech and clean tech are Boston, San Francisco, Silicon Valley, Los Angeles, and Washington, D.C., with New York being left out and Seattle taking its place. New York, San Francisco, Silicon Valley, Los Angeles, Washington, D.C., Boston, Chicago, Miami, and Atlanta are leaders in the fintech industry. Boston, New York, Silicon Valley, San Francisco, Seattle, San Diego, and Philadelphia are centers for the life sciences and health technology.
Deep technology, which includes fields like AI, machine learning, nanotechnology, and big data, is most prevalent in Silicon Valley, New York, San Francisco, Boston, Dallas, and Los Angeles. New York, San Francisco, Los Angeles, and Atlanta are at the top of the US media tech rankings, followed by Austin, Seattle, and San Diego. These cities are a combination of traditional media and IT centers. Finally, Silicon Valley, New York, San Francisco, Los Angeles, Austin, Dallas, and Detroit see the most use of mobility technology, which is defined as things like ridesharing, home delivery, and autonomous vehicles.
