Salt Lake City, the Newest Tech Hub

Salt Lake City’s tech market is taking off. The tech movement has been called Silicon Slopes, and while there has been a recent surge in activity, the market is built on a strong computer science industry dating back decades. As the latest milestone, Collective Medical is opening its headquarters in Cottonwood Corporate, which the company says will accommodate more growth. The city’s economic growth and talented labor pool—from the University of Utah—will propel more tech industry growth.

“Global tech companies such as Adobe, EMC, Micron, Intel, Facebook and Microsoft all operate from Salt Lake City headquarters,” Bryan Welch of Colliers International tells GlobeSt.com. “Tech growth has undoubtedly put Silicon Slopes on an international map. However, economic diversity and strong business fundamentals remain the key to Utah’s success. The state has an educated workforce, favorable public policies, a high quality of living and advantages when it comes to labor costs. All of these factors offer an incredible opportunity for tech companies looking to increase market share and expand global operations within an environment that favors commercial growth.”

The Collective Medical lease, brokered by Colliers International SVPs James Mack and Lora Munson, is an important part milestone in the growth of Silicon Beach. “Collective Medical exemplifies a rapidly growing clip of homegrown Utah technology companies finding success on a global scale,” adds Welch. “Utah headquarters and real estate requirements are becoming more sophisticated. Companies like Collective Medical demonstrate exactly what can be achieved by implementing effective real estate expansion strategy and leveraging the sound business fundamentals found within the Utah market.”

The demand for quality class-A space has also spurred new development activity; however, demand is so strong that most projects have been pre-leased before delivery. This positions the Salt Lake City market for more leasing activity in the year ahead. “Utah’s strong economic performance is expected to secure its place as one of the top performing economies in the nation well into 2019,” adds Welch. “The state’s excellent business climate and low cost of living have created a place where companies can thrive. However, there are potential roadblocks to continued growth such as adapting to rising housing cost, transportation and infrastructure development and improving air quality.”

Venture capital investment will also ensure tech industry growth. “Silicon Slopes has created momentum and gravity, and the market has seen an influx of investment capital on all fronts,” says Welch. This has included mergers and acquisitions, like SAP’s purchase of Utah-based Qualtrics for $8 billion last year. “Many other Utah-based companies turned to IPO’s,” says Welch. “Pluralsight and DOMO were two tech unicorns that successfully navigated the transition to a publically traded operations model in 2018. “As numerous tech companies continue to deliver results, investment capital is becoming more readily available for hyper-growth companies and startups looking to powerfully scale.”