Tech slowdowns continue to affect the commercial construction market, particularly the outlook for the U.S. office market.
Technology companies accounted for 40.5% of all leasing activity through the third quarter of 2022. That means hiring freezes and slower growth expectations in the tech sector are beginning to take a toll on the office construction market outlook.
“The bigger issue actually is that [tech] firms would lease more space than they needed at the time of the lease to give themselves substantial room to grow,” said Bitner. “Now, in this current macroeconomic environment, they’re expecting to grow less.”
