“Everyone is entitled to be stupid, but some abuse the privilege. ”
Commercial News » Austin Edition | By Michael Gerrity | November 25, 2015 9:00 AM
Phoenix: With one of the most active development pipelines in the country–3.9 million square feet under construction–Phoenix’s workplace offerings will evolve toward tech tenant tastes at competitive prices. Phoenix also offers the second lowest average monthly apartment rent of the report’s 37 markets.
Even though Northern California is the cradle for the technology industry, and Silicon Valley has matured beyond the garages from which it was born; technology firms and start-ups aren’t just exploring new U.S. markets, and they’re starting to plant roots. This is according to JLL’s recently released 2015 United States Technology Office Outlook Report. –
Over the past year, 73 percent of the sector’s office leases represented occupancy growth. With Northern California holding nine of the top 15 most expensive in-demand technology submarkets–led by Downtown Palo Alto at $98.68 per square foot–tech firms are looking to other zip codes to fuel their future. Expansion for the technology industry in 2015 is no longer just about the convenience of cheaper rents or accessing new talent pools. It’s a strategic necessity. – “Technology companies and start-ups need to look at a full range of options as part of their location strategy,” said Steffen Kammerer, leader of JLL’s Technology Practice group. “These companies have to grow. They can still hold a headquarters in the Bay Area, but their offices in secondary or tertiary markets can sometimes support larger staffs or hold just as much strategic importance to their business plans. We’re seeing this now more than ever.” –
Fortunately, according to JLL’s report, the same economic forces that are pushing rents higher along familiar Northern California streets like Sand Hill Road and Hamilton Avenue–which at $141.60 and $124.44 per square foot respectably are the most expensive in the United States–are making it possible for the sector to spread the wealth into markets like Atlanta, Detroit, Orlando and Phoenix. In the past year, 34 technology companies expanded into new locations across 19 markets with more than 2.1 million square feet of office space.
“Other markets are not competing against Silicon Valley. They’re competing to be more like Silicon Valley,” said Julia Georgules, Director of U.S. Office Research for JLL. “Technology has become so pervasive in business that it’s now becoming a part of every industry and every market. This is generating a new momentum and energy in smaller markets and making them attractive to the type of talent that the technology industry is recruiting. It’s not necessary to be located in San Francisco or Silicon Valley anymore as a result, although you’ll still find great opportunity in those markets.”
Venture capitalists are even casting a wider net across the United States. Last year, 75.8 percent of unicorn companies were located in San Francisco and Silicon Valley; however, that number has shrunk to 59.2 percent with a remaining share in Utah, Oakland-East Bay, Boston, Washington, D.C. and Orange County, California.
Identifying the Next Growth Market
Not all locations are equal, however, particularly for young start-ups and small-to-mid sized technology firms.
“The definition of opportunity or what determines a ‘sweet spot’ market is constantly evolving, and the time to capitalize on those opportunities isn’t infinite,” said Amber Schiada, Director of Research for Northern California and Rocky Mountain region. “Start-ups are now competing with other industries for talent and creative space that will push rents at a faster rate over the next 12-18 months. That’s why we developed this matrix, so that these companies could quickly and easily examine a full range of factors when selecting their next location.”
JLL’s evaluation identified 21 markets that were ideal for technology companies making location selection with cost in mind. Some of their findings included:
- Austin: Texas’s tech hub was a prime low-cost alternative, however, the market has caught up slightly with average asking rents sitting at $32.59 per square foot, 10th highest among the report’s 37 markets. Austin’s 15 percent annual job growth, second only to San Francisco, will keep talent attraction strong.
- Las Vegas: Job growth was 12.7 percent with an average tech wage of just $79,408, making Las Vegas a cost prohibitive option for potential start-ups. The city’s expanded potential could depend on the ability to recruit a brand-name technology firm to mix with the hospitality sector and Zappos.
- Nashville: The start-up future is bright for the Music City due to Tennessee’s selection for a $100 million program called TechHire. Lack of office space will challenge rapid expansion, but innovation will drive interest as Nashville led the country in patent density (utility patents per every 1,000 people).
- Phoenix: With one of the most active development pipelines in the country–3.9 million square feet under construction–Phoenix’s workplace offerings will evolve toward tech tenant tastes at competitive prices. Phoenix also offers the second lowest average monthly apartment rent of the report’s 37 markets.
- Raleigh-Durham: North Carolina’s Triangle is developing into a popular back-office and financial technology market. With the country’s sixth lowest average annual cost per employee–at 175 square feet per person–Raleigh-Durham’s tech sector presence will continue to expand behind the technology units of firms like Fidelity and Credit Suisse.
Retail / Industrial / Office / Land and Multifamily.
http://walter-unger.com/?p=11881
2
Click here to find Reasons to Consider me for Commercial Referrals
http://walter-unger.com/?p=15010
3
Click here to View My Listings and Profile
http://www.loopnet.com/profile/14101172900/Walter-Unger-CCIM/Listings/
4
Click here to find out what is a CCIM:
http://www.ccim.com/about-ccim/what-ccim
5
Click here to view my website:
6
Click here for Map of Apartments for Sale (10+units)
http://www.easymapmaker.com/map/c2d8e018a34f1d46bfb692437bd4753f
7
3rd QTR 2015 GREATER PHOENIX APARTMENT OWNER’S NEWSLETTER Kasten Long Commercial Grpup.
8
Click here: No Slowdown in New Construction in Q3 – Apartments
http://walter-unger.com/?p=15073
9
Click her to join my mailing list :
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Phoenix Commercial Real Estate and Investment Real Estate: investors and Owner / Users need to really know the market today before making a move in Commercial Properties or Commercial Investment Properties in Phoenix / Tucson / Arizona, as the market has a lot of moving parts today. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and Residential Land in Phoenix / Tucson / Arizona. Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands Commercial Properties and Investment Properties in Phoenix / Tucson / Arizona, and Commercial Land or Residential Land in Phoenix / Tucson / Arizona.
WHY PHOENIX ARIZONA : ???
http://walter-unger.com/?p=13391
1
Timeline of Phoenix, Arizona history
http://en.wikipedia.org/wiki/Timeline_of_Phoenix,_Arizona_history
2
http://en.wikipedia.org/wiki/Phoenix,_Arizona
3
Facts of Arizona – year 1848 to 2013
http://walter-unger.com/?p=9507
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix.
walterunger@ccim.net 1-520-975-5207
http://www.loopnet.com/profile/14101172900/Walter-Unger-CCIM/Listings/
Check out my professional profile and connect with me on LinkedIn.
https://www.facebook.com/ungerccim
https://twitter.com/Walterunger
https://plus.google.com/u/0/b/114560883588623379451/
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. I am also a commercial land specialist in Phoenix and a Landspecialist in Arizona. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
Walter Unger CCIM
Senior Associate Broker
Kasten Long Commercial Group
2821 E. Camelback Rd. Suite 600
Phoenix , AZ 85016
Direct: 520-975-5207
Fax: 602-865-7461
Reasons to Consider me for Commercial Referrals
View my listings and my profile at:
http://www.loopnet.com/Profile/14101172900/Walter-Unger-CCIM/
a little about me and my expertise – video
commercial-investment real estate adviser-land specialist
https://www.youtube.com/watch?v=PPs3kpKR4nY
Delivering the New Standard of Excellence in Commercial Real Estate
- Commercial Real Estate Scottsdale
- Commercial Real Estate Phoenix
- Commercial Real Estate Arizona
- Commercial Investment Properties Phoenix
- Commercial Investment Properties Scottsdale
- Commercial Investment Properties Arizona
- Land Specialist Arizona
- Arizona Land Specialist
- Land Specialist Phoenix
- Phoenix Land Specialist
- Land For Sale Phoenix
- Land for sale Arizona
- Commercial Properties For Sale Phoenix
- Commercial Real Estate Sales Phoenix
- Commercial Properties Phoenix
- Commercial Properties Arizona
- Commercial Land Specialist Phoenix
- Commercial Land Phoenix
- Multifamily land Phoenix
- Retail Land Phoenix
- Industrial Land Phoenix
- Land Commercial Phoenix
- Land Retail Phoenix
- Land Industrial Phoenix
- Land Multifamily Phoenix
- Industrial Land for sale Phoenix
- Land Industrial
- P
- Investment Real Estate
Disclaimer of Liability
The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.