Low unemployment proves 90's forecasts mistaken.

As a result of a proliferation of personal computers and the technology boom, many analysts in the mid-1990's forecast a shrinking workforce and depressed real estate markets. But the exact opposite has proved to be the case, according to Cushman & Wakefield managing director of Investment Research, Janice Stanton.

"The demand for space has increased, as new office jobs in high tech, e-commerce and telecommunications have been created," said Stanton. She also pointed to advances in existing industries, such as biotech and health care, which have experienced job growth as a result of new technology.

A direct result of the technology boom has been the revival of Downtown office markets. Not long ago, many were predicting the demise of the Downtown as corporations were expected to flee the big cities for lower-cost suburbs. While many back-office operations have relocated out of high-cost Downtowns, Downtown markets are thriving because of technology jobs.

Stanton pointed to the supply of labor as a major reason 24-hour cities such as New York, San Francisco and Boston have become high-tech centers.

"With unemployment at 30-year lows, recruiting has become a major factor. Techsavvy employees can choose where they want to be," she said. "And they want the excitement and vibrancy of the big cities."

Today, the traditional 24-hour cities (Boston, NY, San Francisco) have the highest rents and lowest vacancy rates in the country.

"Technology has changed the nature of recent job growth and the composition of the workforce," Stanton said.

"While computerized information has replaced many administrative and clerical jobs, these losses have been overwhelmingly offset by the unexpected exponential growth of high-tech jobs and by the boost that technology-driven productivity has given to the economy," said Stanton.

High-technology jobs are expected to grow at seven times the national average over the next decade.