Dallas and Austin Capture Users in The Great Tech Migration

AUSTIN, TX/DALLAS—Research from Cushman & Wakefield explores “The Great Tech Migration” out of San Francisco and into cities such as Dallas, Austin, Chicago and New York. Specifically, Dallas’ tech sector continues to grow—it now represents 5.8% of total employment and accounts for 6.9% of Dallas office space.

Tech users are demanding offices with large outdoor spaces or courtyards with Wi-Fi, outdoor games and patios, Cribb Altman, a senior director within Cushman & Wakefield’s tenant representation group and a member of the firm’s technology practice group, tells GlobeSt.com. Those tenants are increasingly drawn to buildings that provide tenant lounges, fitness centers and other wellness initiatives/programs, such as sit/stand desks and yoga classes. And of course, walkability to restaurants is still paramount, he conveys.

“In Dallas, there has been a flight to class-A buildings with attractive amenities, as this helps with recruitment and retention,” Altman tells GlobeSt.com. “We’re seeing tech users want offices with predominantly open areas, but with lots of huddle rooms or phone rooms so employees can have focus space and take personal calls. Benching is becoming more common, since it allows tech users to become more efficient with their space. Meanwhile, co-working space is very attractive as teams can office together but have access to shared common space and can sign short-term leases, which provides maximum flexibility. Finally, offices with fiber connectivity and a strong WiredScore are attractive because they allow tech companies to work faster and more efficiently.”

And new tech firms are moving or being started in Texas every day. In fact, Austin ranks fourth in tech employment, in line after Washington, DC, Boston and Seattle, and is one of five markets with more than 2 million square feet of tech space, at 6.1 million square feet. The main company type? Information technology, which grabbed 76% of the space in those markets.

“Austin is and will continue to be a magnet for tech companies due to the high concentration of qualified talent and we continue to see tech users seek collaborative work environments,” Holliday Hinckley, Cushman & Wakefield broker, tells GlobeSt.com. “Within their offices, tech companies are providing a variety of work environments to address each employee’s work style: open area benching, breakout couches, sit stand desks, call nooks, etc. This allows for employees to change up their surroundings at their discretion while still being a part of the overall collaborative environment.”

All the while, Hinckley says that employers are aware that the Austin workforce is very active.

“Proximity to a running trail, gym or outdoor fitness will always be a great tool for employee attraction and retention,” he says. “Bike storage has also become increasingly important. More and more Millennials prefer biking to work over driving and other forms of public transportation.”