Software, search and e-commerce companies collectively expanded their share of the largest 100 tech-industry office leases in 2019, while leasing momentum increased in markets such as Manhattan, Seattle and Washington, D.C. Tech firms are geographically diversifying their workforces due to talent shortages and costs pressures.

Technology companies account for about half of the NASDAQ index market capitalization and its performance represents future business and workforce growth. As a result, national high-tech industry employment is highly correlated with the NASDAQ.

More than 6 million highly skilled workers across the U.S. and Canada comprise the tech talent that is leading global innovation. Shrinking availability of tech talent in leading markets has spurred a spillover of hiring momentum in smaller and upstart markets in the U.S. and Canada as expanding tech employers seek additional labor pools.

The high-tech industry’s job growth rate is more than four times the national average since 2010 and is the most important driver of real estate demand for Tech-30 office markets. At 21%, high-tech claimed the largest share of major U.S. office-leasing activity in H1 2019, and economic indicators point to continued momentum for the tech sector.