Look out, Bay Area! You still may be the United States’ primary tech hub, but you’re not the only market that firms in the space are moving to.
Skyrocketing costs for office space, housing and skilled labor – plus the shortage of that labor – are driving some tech firms to seek locations in emerging “secondary” submarkets. So says CBRE's Tech-Thirty 2016 report.
The report analyzed North America’s top 30 tech markets and measured the industry’s impact on the office market. And what an impact it was: Tech accounted for 20% of all leasing activity this year.
But more and more of that leasing activity is taking place outside the cities that traditionally dominate tech. More firms are taking the opportunity to go into lower-cost, secondary submarkets for operations that don’t necessarily have to be at the “epicenter of innovation.” These emerging markets include places like Phoenix, Austin, Nashville, Charlotte, Dallas.