Location has always mattered in commercial real estate. But what makes a strong location is changing.
As artificial intelligence reshapes how companies grow, hire, and use office space, access to skilled tech talent is becoming an increasingly important factor in where businesses choose to expand.
For commercial real estate investors, that’s a trend worth watching.
According to CBRE, tech companies accounted for nearly 23% of all U.S. office leasing activity in the first quarter of 2026, outpacing every other industry. Much of that momentum has been driven by AI companies expanding in markets with deep talent pools and established innovation ecosystems.
Why Talent Matters to Real Estate
Companies don’t choose markets based on real estate costs alone.
They also need access to the people who can help their businesses grow.
That means markets with strong concentrations of skilled workers can become more attractive to employers, which can support office demand, job creation, population growth, and other parts of the local commercial real estate market.
CBRE’s latest research shows this clearly. In the first half of 2026, tech companies accounted for 21% of U.S. office leasing activity, and 64% of tech firms surveyed said they plan to expand their office footprint over the next three years.
What Investors Should Pay Attention To
When evaluating a commercial real estate opportunity, the property itself is only part of the equation.
Investors should also understand what’s happening around it.
Are employers expanding in the market?
Is the area attracting skilled workers?
Are companies signing longer leases?
Is there enough demand to support the asset over the long term?
These trends can help investors better understand where future demand may come from and whether a market has the fundamentals to support an investment.
AI Isn’t Necessarily Making Office Space Disappear
There’s been plenty of discussion about AI reducing jobs and shrinking office footprints.
The reality is more nuanced.
CBRE found that 23% of organizations say AI is already influencing their space-planning decisions, while another 30% expect it to have a meaningful impact within two years. At the same time, more than one-third expect AI to increase their need for higher-quality office amenities and experiences.
For investors, that means AI may change the type of commercial space companies want rather than simply eliminating demand.
Financing Still Comes Back to the Fundamentals
From a lending perspective, trends like these matter because commercial properties don’t exist in isolation.
The strength of the local economy, tenant demand, employment trends, property performance, and long-term market outlook can all play a role when evaluating an investment and determining how it should be financed.
A growing market doesn’t automatically make a property a good investment, just as a slower market doesn’t automatically make it a bad one.
The numbers still have to work.
The Takeaway
As AI changes how companies operate, tech talent is becoming another factor commercial real estate investors should have on their radar.
The opportunity isn’t about chasing the next tech hub.
It’s about understanding where businesses and workers are going, how that could influence real estate demand, and whether the property and financing make sense within that bigger picture.
If you’re evaluating a commercial real estate opportunity and want to understand the financing options available, I’d be happy to help you look at the numbers.