Dive Brief:
- The technology sector is the leading industry for real estate expansion and employment growth, according to real estate and investment firm JLL’s 2016 Tech Outlook. Companies in particular will look toward the tech hubs like Silicon Valley or Seattle to attract top talent.
- JLL predicts established tech hubs like the Bay Area, Boston and New York will remain the "centers of innovation" well into the future, but more affordable second tier tech cities like Charlotte and Phoenix will also see significant growth.
- In particular, young companies can look toward more affordable secondary markets to draw on both talent and trends in the industry. Hubs such as Austin, Chicago, Denver and Philadelphia, among others, can offer a high growth opportunity at a lower cost.
Dive Insight:
The labor market for talented tech personnel is growing increasingly competitive, especially in places with a large concentration of technology companies. This, and the fact that prices have skyrocketed in popular tech hubs like the Bay Area, Seattle and Boston, has companies looking for less expensive tech areas. But as those smaller markets work to take off, companies may feel they are missing out on the best talent.
Until companies are fully priced out of the major tech hubs, they will remain in the top markets for employment growth and innovation. The top markets for tech leasing currently are Silicon Valley, Seattle, Boston and Chicago.
Seattle is the best city for software engineers, data analysts and quality analysts to earn a living, according to a report released last month by Indeed.
