How Tech Companies Use Real Estate to Support Their Businesses

How Tech Companies Use Real Estate to Support Their Businesses

Tech companies are much more efficient than any other companies when the topic of discussion is the use of collaborative working areas. This efficiency is due to the nature of its work. Tech companies are born on digital platforms and in this way, they dominate the virtual sector. So you may be thinking: why are tech companies using real estate to support their business?

The short answer is that the ongoing pandemic of COVID-19 allowed the development of “hub-and-spoke”. 


The “hub-and-spoke” model consists of the moving of a single centralized office to multiple and smaller satellites offices. The location of those new satellites offices depends on multiple factors like taxes, market, workforce, and much more. This is the main reason why tech companies use real estate to support their business.


COVID-19 acted as a catalyst for companies to rethink their working areas. In this way, it’s possible to observe the use of real estate to support their business. It is happening in all areas but the tech area, in particular, is growing more.


It’s because tech areas naturally grow due to pandemics. BBC published that some companies reached up to 47 % more profit. This is the result of consumers upgrading their devices and the demand for cloud services and games. Alongside the growth of tech areas, there was an increase in real estate support providing spatial solutions to companies.


Understanding The Increasing Demand for Real Estate Solutions

The increasing demand for the use of real estate to support their business is a result of two main factors: hypergrowth of some companies and the need for a fast change due to the impact of pandemics. 


The hypergrowth of companies is better explained through an example. Think that you own a company that grows exponentially, there is a huge increase in profit but it's accompanied by a huge increase in clients and, in this way, there is a need to grow the number of workers and number of chairs for working. They have too many things to take care of and those companies usually have a choice to use the real estate to support their business and, in this way, reduce the spatial concern.


The second factor is that many companies adopted work from home or flexible works. Those companies include the big ones like Amazon, Google, Microsoft, and many others as appointed by Forbes. So, it was possible to observe a migration of centralized offices to small offices. Thus, there was the need for a fast reallocation of physical space and it was observed the use of the real state to support their business

How Does Real Estate Contribute to the Hyper Growth of Tech Companies?

Real estate enterprises are starting to provide commercial office space solutions for other companies. As we discussed, this solution was already present but it’s growing more due to pandemics effects.


Examples of Tech Companies That Use Real estate to Support Their Business


Pinterest is a huge American social media that focuses on image sharing. Pinterest allows users to discover recipes, styles, designs, and many other ideas. Pinterest was planning to start a new office in Seattle. To avoid processes related to physical spaces they decided to use the real estate to support their business.



TripActions is a business travel platform that is growing very fast. As it needs to scale in different places around the round it needs different satellite offices with local talents. In one year they grew from 40 employees to more than 400. They already had a great challenge in the human relations sector and they chose to use the real estate to support their business.


As it was possible to observe, tech companies, in particular, are looking for real estate to support their businesses. The main reason for that search is because real estate can solve their growing demand for new work areas faster than an internal process of building an entire new headquarter. 


One great place to check out as a fast growing tech company to support your space requirements in the Miami area is Iconic Workspaces. Feel free to schedule a free tour today with our team.