OK, the signs are still modest, but at least they’re headed in the right direction.
Reuters reports that recent REIS data shows that office vacancy rates are declining in the nation’s technology centers:
During the first quarter, the average New York office rent rose 1.4 percent to $47.22 per square foot. Over the past 12 months the average New York rent is up 4.8 percent, helped by rising demand from the technology sector.
San Francisco, with its tech-heavy economy, posted a 6.8 percent rent increase over the past 12 months to $32.91 per square foot.
Among the 79 markets tracked by Reis, five of the top 10 for rent growth – San Francisco, San Jose, Boston, Austin and Seattle – are technology-oriented markets where job growth has revved up office demand.
BusinessWeek also reports that US companies are finally beginning to spend in ways that can lead to even stronger job growth:
The latest survey of small businesses by the National Federation of Independent Business shows that 57 percent of firms have made a capital expenditure over the last six months, the largest percentage since March 2008. Much of that appears to be going toward big-ticket items. A combined 63 percent of firms report spending on new equipment and vehicles. Nineteen percent of firms reported having spent $10,000 to $49,000 over the last six months, while 11 percent said they spent $100,000 or more.
We’re getting there.