US Tech Booms in Surprising Areas

CHICAGO—Silicon Valley may have been the epicenter of the US high tech industry, but according to JLL’s latest US Technology Office Outlook, many firms in the sector are branching out. “For high-tech companies, what is most critical is an available labor force and access to talent,” Steffen Kammerer, leader of JLL’s technology practice group, tells GlobeSt.com. And since new college graduates go where they can afford to live, it is the more affordable metro areas which will provide the best access. “I think we are going to see new tech hubs.” 

But affordability is only one consideration. Tech-oriented millennials tend to congregate in cities that offer a work-life balance and growing amenity bases, especially if that includes a lot of outdoor activities. Austin, TX scores high on this metric, and the performance of its tech sector over the past year illustrates it. JLL termed it “a prime low-cost alternative, ” but also noted that with its average asking rents at $32.59 per square foot, the tech hub now ranks 10^th highest among the 37 markets analyzed in the report. Northern California streets like Sand Hill Rd. and Hamilton Ave.—which at $141.60 and $124.44 per square foot respectively—were the most expensive in the US. Still, “Austin’s 15% annual job growth, second only to San Francisco, will keep talent attraction strong.”