ATLANTAcushwaketesting.com/webmaps/tech-cities/PDFs/TechCities...Earlier this year, NCR relocated its 277,000-sf HQ from the Atlanta suburbs to a 480,000-sf built-to-suit building

The tech industry is thriving in Atlanta’s Central Business District (CBD) thanks to world-renowned universities coupled with a low cost of living relative to other major MSAs. Earlier this year, NCR relocated its 277,000-sf HQ from the Atlanta suburbs to a 480,000-sf built-to-suit building in the Midtown submarket. This move will ultimately bring 1,800 new jobs to Midtown. As the company grows, it will benefit from its proximity to talent pools from Georgia State and GeorgiaTech and contribute to Atlanta’s growing technology hub.

MARKET METRICS

The pace of migration to Atlanta continues to accelerate, and the number of people moving to the MSA is forecast to nearly double in the next two years, rising from 53,700 new residents in 2017 to over 96,000 in 2020. The influx of talent via migration, coupled with new graduates from Atlanta’s top universities, should ease the labor shortages that have held back job growth in office-using industries. As Atlanta office space—particularly in the CBD submarkets—continues to diversify, there are many attractive choices for companies seeking to relocate or establish a presence in the Atlanta market.

QUALITY OF LIFE

Tech (and Life Science) Leasing Activity as a percent of Total Leasing Activity including Renewals (2017 through Mid-Year 2018)

TECH IN THE NEWSMidtown’s “Tech Square” has attracted major tech tenants to the area. Portman Holdings is building a 360,000-sf technology center for Anthem Inc.’s IT department, expected to deliver in the first quarter of 2020. Anthem’s Technology Center will create 3,000 jobs over time.

HOTTEST SUBMARKETMidtown stands out as the tech submarket in Atlanta. With Georgia Tech being located in Midtown, the university has succeeded in helping transform the area into a thriving technology hub.

TOP 25 TECH CITIES | ATLANTA CUSHMAN & WAKEFIELD

TECH SHARE OF LEASING ACTIVITY

Source: U.S. Bureau of Labor Statistics (statistics represent MSA as of mid-year 2018), Moody’s Analytics, PitchBook, RCA, Cushman & Wakefield Research

17.1%

82.9%

Tech leasing activity All other

TOP 25 TECH CITIES

ATLANTA

STEM EMPLOYMENT

157,420VC FUNDING (Q3 2017 - Q2 2018)

$1.1B (Up by $589.6M since 2011)

TECH COMPANY EMPLOYMENTTO TOTAL EMPLOYMENT

6.0%

MILLENNIAL POPULATION(AGE 20-34)

20.6%PERCENTAGE BACHELOR’S DEGREE OR HIGHER

37.7%

COST OF LIVING INDEX

102 U.S. 100

CLASS A CBD ASKING RENT(2010 VS. Q2 2018)

67.1% U.S. 25%CLASS A CBD OFFICE SALES $/PSF (% CHG. 2010 VS. Q2 2018)

98% U.S. 26%

The tech industry is thriving in Atlanta’s Central Business District (CBD) thanks to world-renowned universities coupled with a low cost of living relative to other major MSAs. Earlier this year, NCR relocated its 277,000-sf HQ from the Atlanta suburbs to a 480,000-sf built-to-suit building in the Midtown submarket. This move will ultimately bring 1,800 new jobs to Midtown. As the company grows, it will benefit from its proximity to talent pools from Georgia State and Georgia Tech and contribute to Atlanta’s growing technology hub.

Austin is one of the most progressive and entrepreneurial cities in the U.S., catering to an array of industries and businesses of all sizes, especially technology companies. High-tech roots run deep in Austin. Since the 1960s when IBM established a major presence in the city, industry giants have consistently made their way to the “Silicon Hills.” From home-grown companies such as Dell to Fortune 500 juggernauts such as Apple, Oracle, Facebook and Google, Austin has a proven track record as a hub for innovation and as a center for tech-related businesses. The Austin Technology Council, which represents nearly 300 companies, works to integrate tech leaders into everyday life in Austin—from local governmental decisions on city planning and growth to community involvement. Additionally, Austin is the flagship location of the University of Texas, one of the largest universities in the U.S., which provides a consistent pipeline of well-educated talent.

MARKET METRICS

Warm weather, no personal income tax, abundant outdoor activities, a world-renowned music scene, excellent food, and a large, educated labor pool are just a few of the reasons Austin was ranked the #1 “Best Place to Live” by U.S. News in 2018. Housing options are abundant—from downtown lofts to chic tree-lined neighborhoods. Although they are on the rise, home values remain significantly lower than in competing markets such as New York, Seattle and San Francisco.

QUALITY OF LIFE

Represents leased, owner-occupied & pre-leased space as of Mid-Year 2018

TECH IN THE NEWSIndeed.com, an original Austin start-up, is continuing its meteoric growth. In the last 12 months, the company has leased approximately 617,000 sf of newly constructed office space, which will make it one of the largest occupiers in Austin.

The U.S. Army recently selected Austin as the HQ of its new Futures Command, which will work with local tech innovators and researchers to modernize the Army’s future technology needs.

HOTTEST SUBMARKETThe top submarkets for tech tenants in Austin are the CBD and Far Northwest—more specifically The Domain. Referred to as “Austin’s Second Downtown,” The Domain is a fairly recent, high-density, mixed-use development and home to several large international tech companies including Facebook, Amazon, Expedia, Indeed, IBM and TrendMicro.

TOP 25 TECH CITIES | AUSTIN CUSHMAN & WAKEFIELD

TOP TECH OCCUPIERS


2.1 msf

1.3 msf

985,000 sf885,000 sf

800,000 sf

560,000 sf 515,000 sf

365,000 sf

Dell Apple Indeed IBM Facebook Oracle Expedia Google

TOP 25 TECH CITIES

AUSTIN

STEM EMPLOYMENT

80,410VC FUNDING (Q3 2017 - Q2 2018)

$1.4B (Up by $712.8M since 2011)


9.7%



42.8%


114.7 U.S. 100


52.1% U.S. 25%CLASS A CBD OFFICE SALES $/PSF(% CHG. 2010 VS. Q2 2018)

162% U.S. 26%

Austin is one of the most progressive and entrepreneurial cities in the U.S., catering to an array of industries and businesses of all sizes, especially technology companies. High-tech roots run deep in Austin. Since the 1960s when IBM established a major presence in the city, industry giants have consistently made their way to the “Silicon Hills.” From home-grown companies such as Dell to Fortune 500 juggernauts such as Apple, Oracle, Facebook and Google, Austin has a proven track record as a hub for innovation and as a center for tech-related businesses. The Austin Technology Council, which represents nearly 300 companies, works to integrate tech leaders into everyday life in Austin—from local governmental decisions on city planning and growth to community involvement. Additionally, Austin is the flagship location of the University of Texas, one of the largest universities in the U.S., which provides a consistent pipeline of well-educated talent.

MARKET METRICS

Charm City, the former manufacturing mecca, is now driven by eds, meds and feds in the office sector and major consumer products in logistics and distribution centers. Baltimore boasts a cost of living that’s more affordable than other tech hubs and neighboring Washington D.C. And its walkable waterfront and thriving new live/work/play neighborhoods in the CBD and close-in suburbs attract millennials, who account for 21% of population. Major employers include Johns Hopkins University and Health System, University of Maryland Health System, Medstar Health and Northrop Grumman. There are 17 colleges in the region that hold NSA certifications.

QUALITY OF LIFE

Source: PitchBook

TECH IN THE NEWSBaltimore is ranked 14 for metros with the highest salaries for those with tech degrees. It is also ranked the third best city for women who work in the technology field based on gender pay gaps and income after housing costs and has 32 percent of tech jobs filled by women.

HOTTEST SUBMARKETWeWork recently announced they are opening a shared office space in Baltimore’s newest Harbor Point neighborhood in 2020 specifically to serve the city’s technology sector.

TOP 25 TECH CITIES | BALTIMORE CUSHMAN & WAKEFIELD

VENTURE CAPITAL FUNDING


$511.2M

$167.7M

$264.5M$218.8M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

BALTIMORE

STEM EMPLOYMENT

88,950VC FUNDING Q3 2017 - Q2 2018)

$384.0M


5.9%



39.5%


106.5U.S. 100



33% U.S. 26%

(Up by $154.8M since 2011)

Office rents, well below the national average, and an educated workforce – ranked #3 in percentage of Bachelor’s degrees in STEM -- make Baltimore attractive to start-ups and established tech companies alike. The downtown is flanked by Johns Hopkins and the University of Maryland bio parks, and there are more than 60 federal agencies and research labs in the I-95 Baltimore/Washington corridor and surrounding area. The region has two times the national density of cyber-related occupations than the other U.S. cities, and ranks #2 in number of information security analysts. Seven of the top 10 venture investments recipients in the region are life science companies and Johns Hopkins is the largest receiver of R&D grants. Under Armor, T. Rowe Price, Amazon, Morgan Stanley and Leidos are major tenants in the market.

MARKET METRICS

Dubbed “America’s Walking City,” Boston has the seventh-highest percentage of pedestrian commuters in the country (neighboring Cambridge has the highest). The city also boasts proximity to world-renowned universities, hospitals and a public transportation system consistently ranked as one of the best in the country.

QUALITY OF LIFE

Tech Leasing Activity as a percent of Total Leasing Activity including Renewals (2017 through Mid-Year 2018)

TECH IN THE NEWSRapid7 is consolidating its Boston and Cambridge offices into147,000 sf at the Hub on Causeway, Boston Properties’ newdevelopment at North Station. The cybersecurity firm will bejoined by Verizon, which committed to 440,000 sf in Augustof 2018.

HOTTEST SUBMARKETCambridge’s Kendall Square is known as the “most innovative square mile on the planet.” With a vacancy rate of just 1.3%, it is the most competitive submarket in Boston.

TOP 25 TECH CITIES | BOSTON CUSHMAN & WAKEFIELD

TECH LEASING ACTIVITY


73%66%

85%27% 34%

15%

Total MA Cambridge Boston

All other leasing activity Tech leasing activity

TOP 25 TECH CITIES

BOSTON

STEM EMPLOYMENT

167,250VC FUNDING (Q3 2017 - Q2 2018)

$10.9B (Up by $7.2B since 2011)


10%


22%PERCENTAGE BACHELOR’S DEGREE OR HIGHER

46.9%


120.3 U.S. 100



28% U.S. 26%

Innovative technology companies have been part of greater Boston’s tapestry (and significant users of real estate) for more than 150 years. The city’s exposure to academia, government funding, industry and international communities led to a “big bang”– creating Boston’s pool of entrepreneurial talent. Discussions about the origin of innovation companies generally start with across-the-river Cambridge, and focus on Kendall Square. But innovation’s impact on commercial real estate goes well beyond Broadway and Main Street. Decades before Kendall Square’s razor-thin vacancy and prohibitive rents pushed start-ups to the Seaport and suburbs, MIT spin-offs began to cluster around Route 128.

MARKET METRICS

Charlotte, along with much of the Southeast, is seeing robust population migration from the Northeast and around the country. Apartment List, Inc. has Charlotte listed as the #1 city for millennial growth which could be attributed to the low cost of living and robust job growth. Known for its great weather and close proximity to the ocean and mountains, Charlotte presents extensive opportunities to pursue a multitude of outdoor activities.

QUALITY OF LIFE

Tech Leasing including Renewals (2017 through Mid-Year 2018)

TECH IN THE NEWSAvid Exchange completed its build-to-suit (roughly 200,000 sf) headquarters last year just north of Charlotte’s CBD. In addition, in late 2017 Lending Tree acquired two buildings—totaling 120,000 sf—in SouthPark.

HOTTEST SUBMARKETIn addition to the Uptown (CBD) submarket where most financial institution corporate offices reside, Fintech companies are flocking to the urban infill submarkets. These locations boast a high number of creative office space tenants that provide an adequate environment conducive for an innovative workforce.

TOP 25 TECH CITIES | CHARLOTTE CUSHMAN & WAKEFIELD

TOP TECH OCCUPIERS

Source: U.S. Bureau of Labor Statistics (statistics represent MSA), Moody’s Analytics, PitchBook, Cushman & Wakefield Research

200,000 sf

150,000 sf

120,000 sf

53,000 sf 46,000 sf

AvidXchange CompuCom LendingTree Xylem Curvature

TOP 25 TECH CITIES

CHARLOTTE

STEM EMPLOYMENT

65,070VC FUNDING (Q3 2017 - Q2 2018)

$93.1M (Up from $69.7M since 2011)


4.1%



34.4%


98.1 U.S. 100

CLASS A CBD ASKING RENT (2010 VS. Q2 2018)


103% U.S. 26%

Since the establishment of the Federal Reserve’s Charlotte office in 1927, Charlotte has been a major financial hub in the U.S., and is currently the third largest. Financial institutions such as Bank of America, Wells Fargo, Ally Bank, BB&T, Barings and Ernst & Young all have significant presences in the Queen City, and have become natural catalysts for creating a large Fintech hub. Access to capital needed to perpetuate growth, as well as the advantage of being near institutional banks (customers), offer startups—as well as established Fintech companies—numerous opportunities in Charlotte. Banks also provide an enormous talent pool of employees that Fintech startups can tap into. Synergy between Charlotte’s financial institutions and its growing Fintech industry will continue as the modern financial marketplace evolves and implements technological innovation.

MARKET METRICS

Chicago’s diverse neighborhoods and food, free concerts and events, architecture and cultural offerings make it a stimulating place to live. The city recently added parks and bikeways to already robust green space and lakefront access. During the cold months, museums and Broadway shows keep people entertained, as well as lots of music, comedy (think Improv Olympic and Second City), and small theater productions. Population has grown rapidly due to a mix of empty nesters leaving the suburbs and recent college grads moving into the city; as a result, rent and housing purchase costs increased.

QUALITY OF LIFE

Occupancy by sf as of Mid-Year 2018

TECH IN THE NEWSWhen tech companies such as Motorola first came into the city years ago, they chose loft office spaces to attract young talent; now they’re leasing traditional office space too. New developments are very popular for major software companies too.

HOTTEST SUBMARKETWhile River North used to be the only hot submarket for tech companies, other areas across Chicago are becoming attractive too. Fulton Market has made a name for itself as a major tech market largely due to Google’s presence. The West Loop has also seen an increase in leasing activity in part due to the abundance of new construction.

TOP 25 TECH CITIES | CHICAGO CUSHMAN & WAKEFIELD

TECH OCCUPANCY BY SUBMARKETMAJOR TECH OCCUPIERS


372,200 sf

338,200 sf

261,100 sf

203,100 sf

140,400 sf

63,900 sf

Google Groupon CDWCorporation

EnovaInternational

ComPsych MicrosoftCorporation

Central LoopWest Loop East LoopRiver NorthNorth Michigan

Avenue

TOP 25 TECH CITIES

CHICAGO

STEM EMPLOYMENT

205,180VC FUNDING (Q3 2017 - Q2 2018)

$1.7B


4.9%



37.2%


98.9 U.S. 100



-7.4% U.S. +26%

Once a major hub for hard goods, Chicago has adapted to software manufacturing, establishing itself as one of the major tech cities in the country. Chicago boasts an educated and young workforce—more than one-third of Chicago’s millennial population have bachelor’s degrees, and, with two of the top business schools in the world, employers have access to some of the best talent in the country. Since the cost of living is significantly lower than other tech markets such as Los Angeles, San Francisco or New York, Chicago is an appealing choice for the young talent tech companies are looking for and has drawn Microsoft, Google, Salesforce and Facebook.

MARKET METRICS

DFW’s climate allows outdoor activities year-round, with Klyde Warren Park, White Rock Lake Park and the redeveloped Trinity Park–all promoting a healthy live-work-play environment. The area also benefits from Texas tax policy: there is no state or local personal income tax, no local occupation tax, no local wage tax and no state property tax.

DFW also boasts a vibrant cultural scene. The Dallas Arts District spans nearly 70 acres and includes the Dallas Museum of Art, the Morton H. Meyerson Symphony Center and the AT&T Performing Arts Center, all of which creates the largest contiguous urban arts district in the country. The Fort Worth Cultural District includes the Kimbell Art Museum, the Amon Carter Museum of American Art and The Modern, all three of which are internationally recognized.

QUALITY OF LIFE

Source: PitchBook

TECH IN THE NEWSTech Titans 2018 five fastest-growing tech companies in North Texas: Alkami, Broardjump, Newsline Interactive, Tripbam and Zimperium.

HOTTEST SUBMARKETTop submarkets for tech are Legacy, Las Colinas, Uptown and Richardson.

TOP 25 TECH CITIES | DALLAS-FORT WORTH CUSHMAN & WAKEFIELD



$323.7M

$677.2M

$367.0M $380.0M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

DALLAS-FORT WORTH

STEM EMPLOYMENT

194,790VC FUNDING Q3 2017 - Q2 2018)

$583.7M


6.1%



33.9%


111.8 U.S. 100



81% U.S. 26%

(Up by $86.5M since 2011)

According to “The Cities Creating the Most Tech Jobs 2017” published by Forbes, Dallas has twice as many tech jobs as Austin, even though Austin gets most of the publicity for Texas-based tech talent. DFW has the 5th largest labor force in the country; the Bureau of Labor Statistics reports that one out of every 20 workers in Dallas is in the tech industry and earns an average of $93,000 per year.

Dallas continues to expand its tech resources. The University of Texas at Dallas just qualified for the National Research University Fund, which will unlock millions of dollars in additional state funding for the school. The metro area is in high regard as a home to data center users as well: Facebook more than doubled the size of its data center campus in the area, occupying an area totaling 150 acres.

MARKET METRICS

Tech has permeated every submarket in the Denver metro. Although Boulder continues to reign as the epicenter for tech occupiers, Denver’s CBD has seen an influx too. Driven largely by the extensive mass transit options located in the heart of downtown Denver, occupiers have continued to utilize the CBD’s central location as an asset to recruit and retain talent. Paired with the highly educated millennial workforce that resides predominantly in the urban core, tech companies have found that the CBD provides benefits that other Denver metro locations do not.

HOTTEST SUBMARKET


TECH IN THE NEWSThere have been a large number of west coast tech companies relocating and growing in Denver. Companies such as Facebook, Apple, Marketo and Slack Technologies all have expanded their Denver footprint within the last year.

QUALITY OF LIFEThe beauty and lifestyle of metro Denver makes it one of the most desirable destinations in the Rocky Mountain region. With over 300 days of sunshine per year, 39,000 miles of trails, four national parks and more than 20 ski resorts, Denver’s attributes help foster an unparalleled work-life balance.

TOP 25 TECH CITIES | DENVER CUSHMAN & WAKEFIELD



12.4%

6.6%

Mid-year 2018 2017

TOP 25 TECH CITIES

DENVER

STEM EMPLOYMENT

104,410VC FUNDING (Q3 2017 - Q2 2018)

$1.3B (Up by $658.9M since 2011)


6.9%



42.5%


112.8 U.S. 100



73% U.S. 26%

Denver’s tenant mix continues to diversify, due primarily to the strong tech presence growing throughout the Denver metro area. With three large major research institutions (the University of Colorado-Boulder, Colorado State University-Fort Collins and the Colorado School of Mines) contributing to a highly educated millennial workforce, tech companies view Denver as a top destination in the Rocky Mountain region. Growth has been strong in the tech sector, largely due to the organic growth exhibited throughout the market by companies such as Xactly, Optiv and Pax8. Coupled with the arrival of “Big Tech” companies including Apple, Facebook and Amazon, along with an influx of tech companies from the West Coast, Denver’s tech sector continues to strengthen.

MARKET METRICS

Palm trees, movie stars, surfer dudes…venture capitalists? GLA encompasses the entire experience that tech companies demand: high-quality of life, a lifestyle that emphasizes balance, world class colleges and universities (Caltech, UCI, UCLA, USC), a large talent pool, capital funding and plentiful supply of jobs and workers—all reflecting LA’s current standing as a top tech city. Cost of living, although perceived as high, is low in comparison to other gateway/tech markets. There’s also the youth factor. Millennials make up over 22.7% of GLA residents. As the driving force behind much of today’s innovation culture, this cohort is highly sought out by growing companies. This cluster of talent provides favorable conditions that will likely promote future growth. Startups and industry titans alike strongly prefer to locate in areas with an existing talent base, which makes Los Angeles a promising option for a broad set of employers.

QUALITY OF LIFE

Source: PitchBook

TECH IN THE NEWSSpotify is set to open its 110,000-sf regional headquarters in the Arts District in Downtown Los Angeles. Meanwhile, Amazon and Apple continue expanding their footprint in Culver City (Westside) with 65,000 sf and 128,000 sf respectively. OCTANe and LaunchPad, have provided $1.4 billion in investment capital, which has led to the creation of 1,500 start-up companies in Orange County and over 7,000 new jobs.

HOTTEST SUBMARKETWe’ve experienced an incredible clustering effect that has helped shape the region. The tangible proof of the impact is some of the most innovative architecture in Hollywood (Columbia Square & Icon), the creative campuses on the Westside (The Hangar & Element LA), the expansion of Silicon Beach into El Segundo, the transformation of DTLA (The Times Campus & AT MATEO), UCI Research Park within the Airport Area and the amenity rich area at Irvine Spectrum (400 Spectrum & Five Point Gateway/Broadcom.

TOP 25 TECH CITIES | GREATER LOS ANGELES CUSHMAN & WAKEFIELD



$5.6B

$1B

$6.6B

$5.9B

$744M

$6.7B

$5.3B

$803M

$6.1B

$2.7B

$344M

$3B

Los Angeles-Long Beach Orange County Greater Los Angeles

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

GREATER LOS ANGELES

STEM EMPLOYMENT

269,750VC FUNDING (Q3 2017 - Q2 2018)

$6.3B (Up by $3.7B since 2011)


5.1%



33.5%


128.8 U.S. 100

CLASS A CBD OFFICE SALES $/PSF(% CHG. 2010 VS. Q2 2018)

38% U.S. 26%CLASS A CBD ASKING RENT (2010 VS. Q2 2018)

35.5% U.S. 25%

Technology, especially fast-growing firms that deliver it, have disrupted CRE—developers know it, companies understand it, and the region benefits from it. Tech companies in the Greater Los Angeles (GLA) area are fueling new jobs, changing local communities, and driving core real estate cycles in leasing and rental growth. Each market is unique—GLA tech has a distinct SoCal flavor. Innovations propel our industry and impact on the region and will into the future. GLA supports nearly 270,000 skilled technology jobs, and more than 306,000 residents work for some kind of tech firm.

With 13.3 million people, a population only second to New York among U.S. metros, LA and Orange County encompass an area of 5,700 square miles with 290.8 million square feet (msf) of office space and a GDP of more than $1 trillion. LA County alone ranks among the world’s largest economies. Size is one advantage GLA has that many Tech 25 Cities do not possess. GLA has a diversity of job sectors and industries, which tech has broadened even further.

Content creation, digital media, entertainment, gaming and automation, cyber security, defense tech, healthcare technology, med tech, SaaS and biotech all bode well in a less constrained market. Unique sub-pockets are individually reaching the maturation phase. The GLA tech ecosystem has afforded companies the opportunity to grow, attract talent and thrive as an interconnected community. Whether it’s content/production in Hollywood (Netflix & Viacom), tech/advertising in the Westside (Google & Fandango), start-ups in DTLA (Hyperloop & Honey), biotech in the OC Greater Airport Area (Edwards & Allergan), or cybersecurity in South County’s Irvine Spectrum (Cylance)—companies are planting their flags in these industry-specific tech micro-communities.

MARKET METRICS

The Twin Cities’ relatively low cost of living, numerous natural and urban amenities, access to quality healthcare and a consistently highly rated public education system all contribute to an outstanding quality of life. The metro area offers over 1,700 lakes and one of the most extensive park and trail systems in the country. The region is home to six professional sports franchises (NFL, NBA, NHL, MLB, WNBA, and MLS) and 34 colleges and universities – from the globally recognized University of Minnesota to world-class liberal arts colleges including Macalester and Carleton. Several internationally acclaimed museums and theaters also call Minneapolis home, including the Guthrie Theater, the Minneapolis Institute of Art and the Walker Art Center.

QUALITY OF LIFE

Tech Leasing Activity including Renewals (2017 through Mid-Year 2018)

TECH IN THE NEWSTech start-up activity continues in the metro. Accelerators Gener8tor, Beta/Space, Techstars Farm to Fork, and Techstars + Target Retail together will welcome 29 local and out of state startups this cycle. Through three classes, Techstars + Target Retail companies alone have raised over $50 million to-date.

HOTTEST SUBMARKETTech has a presence in every submarket throughout the Twin Cities, but amenity rich and rail accessible North Loop and other Minneapolis CBD neighborhoods remain highly sought after by both existing and emerging tech companies. Suburban locations, such as the West End, will remain appealing destinations as renovated and rebranded office space offer floorplans and amenities occupiers prefer.

TOP 25 TECH CITIES | MINNEAPOLIS-ST. PAUL CUSHMAN & WAKEFIELD

TOP TECH OCCUPIERS


120,000 sf

103,100 sf

59,300 sf50,000 sf

Calabrio Amazon nVent Amplifon

TOP 25 TECH CITIES

MINNEAPOLIS-ST. PAUL

STEM EMPLOYMENT

122,860VC FUNDING (Q3 2017 - Q2 2018)

$433.1M


6.6%



40.5%


102.1 U.S. 100

CLASS A CBD OFFICE SALES $/PSF (% CHG. 2010 VS. Q2 2018)

-2% U.S. 26%CLASS A CBD ASKING RENT(2010 VS. Q2 2018)

22% U.S. 25%

Minneapolis-St. Paul’s cadre of home-grown Fortune 500 companies (Target and 3M, among others), its major research institutions (including the University of Minnesota) and an internationally renowned cluster of healthcare technology leaders such as UnitedHealth Group and Medtronic, have contributed to making the Metro a top area for tech. The diverse, technology-driven industry base, coupled with a highly educated workforce, makes the market attractive for tech stalwarts such as Amazon, which continues to expand its footprint in the region. Start-up activity also remains healthy as accelerators collaborate with corporate entities to nurture and grow new tech companies.

MARKET METRICS

In the annual Mercer Quality of Living Survey, Montréal ranked fourth in North America and broke through the top 30 list among 231 cities globally, ranking 21st. An affordable alternative compared to Vancouver and Toronto, Montréal is known for its exceptional restaurants and vibrant street-front retail. With Mont-Tremblant less than two hours away, the city also boasts some of the best skiing east of the Rocky Mountains. Culturally, Montréal was one of the first cities in North America to be named a UNESCO City of Design. One issue facing the city is its aging infrastructure which results in major gridlock, particularly during rush hours.

QUALITY OF LIFE VENTURE CAPITAL FUNDING

TECH IN THE NEWSMicrosoft Research Montréal, a cutting edge research lab that has been increasing its presence in Montréal, recently announced it is relocating to Mile-Ex, a growing artificial intelligence hub. The innovative technology firm Gsoft is expanding into 95,000 square feet (sf) on the ground floor of Allied Properties’ Le Nordelec building. Its original space—in excess of 50,000 sf was sublet by REEL FX, an animation studio producing top-tier theatrical films and theme park ride content.

HOTTEST SUBMARKETNeighborhoods such as Mile-End and Mile-Ex have seen a wave of tech companies committing to hip industrial conversions. The creative sector continues to be drawn to “character” office conversions found in such submarkets which offer the additional benefit of lower taxes and operating costs. The creative sector is also growing in Montréal’s downtown market where bigger companies can benefit from larger floorplates that offer greater efficiency advantages.

TOP 25 TECH CITIES | MONTRÉAL CUSHMAN & WAKEFIELD

Source: Statistic Canada (statistics represent MSA as of mid-year 2018), PwC, RCA, Cushman & Wakefield Research

Montréal has demonstrated its ability to attract strong venture capital investment, with around $800 million (USD) raised in venture capital in 2017 (according to MoneyTree Canada Report by PwC Canada and CB insights). Canadian venture-backed companies closed 116 deals during the second quarter of 2018, generating total venture capital of $900 million (USD). Sonder, a Montréal-based startup making a name for itself in the accommodation industry, recently raised $135 million in new funding.

$310M $334M

$800M

$502M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

MONTRÉAL



23.0% U.S. 26%

VC FUNDING (Q3 2017 - Q2 2018)

$647.6M (Up by $190.7M since 2011)



31.9%TECH COMPANY EMPLOYMENTTO TOTAL EMPLOYMENT

6.9%STEM EMPLOYMENT

164,145

Montréal has a long history as a global technology leader, with deep roots in the aerospace and pharmaceutical industries. Boasting a world-class reputation in the creative sector, Montréal was ranked amongst the top-five game development cities in the world by Game Industry Career Guide. There are an estimated 10,000 full-time workers employed by the gaming industry in the province of Quebec, accounting for approximately half of all Canadian jobs in that sector.

Greater Montréal is also a global animation and visual effects hub. In addition, it is recognized as a global centre supporting the evolution of artificial intelligence, and for having some of the best research centres in the world including IVADO, McGill University’s Centre for Intelligent Machines and the leading-edge Montréal Institute of Learning Algorithms (MILA). Founded by Professor Yoshua Bengio and embracing multiple institutions including the University of Montréal and McGill University, MILA is renowned for its contributions to deep learning. It has made significant advances in key areas supporting AI such as language modelling, machine translation, object recognition and degenerative models.

MARKET METRICS

Tech firms are spread throughout Manhattan, though the core remains in Midtown South where firms such as Facebook, Google, Sony, IBM Watson, Discovery and MasterCard retain a significant presence. Recent construction and renovation deliveries in Midtown and Downtown have attracted firms like Amazon and JP Morgan Chase’s digital headquarters to lease 360,000 sf and 430,000 sf, respectively at Five Manhattan West, located in Midtown’s Penn Station submarket. Spotify will relocate its headquarters to 482,000 sf of customized space at Four World Trade Center in Downtown Manhattan.

HOTTEST SUBMARKET

TAMI Leasing Activity as a percent of Total Leasing Activity

TAMI (Technology, Advertising, Media & Information)

TECH IN THE NEWSTech firms continue to expand in Manhattan, as Facebook increased its occupancy by 240,000 sf to nearly 700,000 sf. 770 Broadway and Google purchased Chelsea Market for $2.4 billion—the largest single office/multi-use sale in NYC history.

QUALITY OF LIFEDespite the high cost of living, New York City continues to attract young talented workers from all over the world who are drawn to the city because of its diversity, transportation networks, parks, theaters, culture, prestigious higher-education, and a 24/7 live/work/play environment.

TOP 25 TECH CITIES | NEW YORK CITY CUSHMAN & WAKEFIELD

TECH LEASING ACTIVITY2017 TO MID-YEAR 2018


31.1%

24.1%

16.6%

11.2%

Midtown South Downtown Manhattan Midtown

TOP 25 TECH CITIES

NEW YORK CITY

STEM EMPLOYMENT

424,850VC FUNDING (Q3 2017 - Q2 2018)

$15.0B (Up by $11.8B since 2011)


5.1%



39.0%


119.7 U.S. 100



103.6% U.S. 26%

New York City’s technology sector continues to grow rapidly, creating a source of high-paying jobs. The expansion of major tech firms such as Google, Facebook and Amazon have added thousands of jobs. Employment sectors making greater use of technology like finance, healthcare and education have contributed to tech-sector growth. Numerous tech start-ups launch yearly due to substantial sources of VC funding, the growth of incubators and the availability of quality labor. Higher-learning institutions such as Columbia University, Mount Sinai, Cornell Tech, and New York University participate in the tech initiative and the city has invested millions of dollars to encourage research and innovation in the growing life sciences industry.

MARKET METRICS

Quality of life and affordability make Philadelphia—and the entire tristate area—an attractive location for businesses. Indeed, the market has become a magnet for professionals of all ages seeking a unique and exciting “live-work-play” experience. In recent years, the millennial population has expanded significantly thanks to business and educational institution growth.

QUALITY OF LIFE


TECH IN THE NEWSAs of early September 2018, Philadelphia remains on the short list for Amazon’s HQ2. The main contributing factor being the number of colleges and universities within the region which accommodate students at any stage of education, thus providing readily available skilled and knowledge-based workers for tech companies.

HOTTEST SUBMARKETTwo of Philadelphia’s suburban submarkets—King of Prussia/Valley Forge and Blue Bell/Plymouth Meeting/Fort Washington—have captured the lion’s share of the tech pie. Almost half of all tech companies in the region are located in these two adjacent Philadelphia metro areas.

TOP 25 TECH CITIES | PHILADELPHIA CUSHMAN & WAKEFIELD

TECH LEASING ACTIVITYTOP TECH SUBMARKETS


14.7% 14.7%

11.7%

5.9%

New Castle County (non-CBD)

West of Broad King of Prussia/ValleyForge

Blue Bell/PlymouthMeeting/FortWashington

TOP 25 TECH CITIES

PHILADELPHIA

STEM EMPLOYMENT

155,690VC FUNDING (Q3 2017 - Q2 2018)

$1.1B (Up by $631.4M since 2011)


5.5%



36.7%


96.4 U.S. 100



55% U.S. 26%

Comcast Corporation has played a pivotal role in the economic and social development of Philadelphia. Over the past 10 years, the company has transformed itself from a regional cable television provider into one of the biggest tech corporations in the U.S. Comcast is now one of the nation’s largest video, high-speed Internet and phone providers, and currently employs more than 2,000 employees in Philadelphia and generates significant economic and fiscal benefits to the city. This year—after roughly four years of construction—the $1.5 billion, 60-story, state-of-the-art skyscraper Comcast Technology Center will open its doors in Center City. It will be the ninth-tallest building in the U.S. Upon completion, Comcast will be the biggest occupier of office space in Philadelphia.

MARKET METRICS

With Portland nestled in the Willamette Valley, its residents are within about an hour and a half drive west to the Pacific Ocean and a one hour drive east to Mt. Hood. Portland is known as a “foodie” city with food carts populating its downtown core and a thriving craft brew scene. With a relatively low cost of living, proximity to natural beauty and ease of public transportation, Portland is continually recognized nationally as a great place to live and work.

QUALITY OF LIFE

Source: PitchBook

TECH IN THE NEWSIn the past six months, venture capital funding has been booming for local tech shops in the Portland area. Jama Software and Exterro, both with headquarters in Portland, were awarded $200M and $100M, respectively, within one month of each other.

HOTTEST SUBMARKETPortland’s urban core is the central hub for established technology firms. With Intel dominating suburban tech in Hillsboro, downtown will remain the top location for tech companies to expand. However, startups are entering the close-In Eastside submarket, attracted by millennial density and industrial buildings being repurposed into creative office spaces.

TOP 25 TECH CITIES | PORTLAND, OR CUSHMAN & WAKEFIELD



$254.8M

$368.7M$408.1M

$503.4M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

PORTLAND, OR

STEM EMPLOYMENT

70,570VC FUNDING (Q3 2017 - Q2 2018)

$690.1M (Up by $381.1M since 2011)


7.4%



38.9%


113.4 U.S. 100


76% U.S. 26%CLASS A CBD ASKING RENT (2010 VS. Q2 2018)

48.8% U.S. 25%

Companies such as Amazon, Google, eBay have opened Portland regional offices to take advantage of a highly educated work force and rental rates that are far below those in the Bay Area, Seattle and Southern California. In addition to Fortune 500 companies, Portland is home to several startup companies that are raking in venture capital funding. Among them is Vacasa, an online vacation rental agency similar to Airbnb, which accounted for nearly one-third of Oregon’s venture capital funding in startups last year. Downtown Portland attracts growth-stage tech firms while Intel, Oregon’s largest employer, dominates the suburban tech scene in the Hillsboro submarket. With a significant amount of inventory scheduled to come online this year, Portland remains robust with opportunities for local tech firms to grow and inbound companies to relocate or expand operations.

MARKET METRICS

Provo ranks high in numerous surveys due to its accessibility to activities and affordability. There is an abundance of green space, mountains, lakes and rivers which provide the perfect back drop for numerous outdoor activities–all within the MSA. Plus Provo has a low cost of living, particularly when compared to most of the other markets on the list. Tech jobs, meanwhile, can pay well into six figures.

QUALITY OF LIFE

Source: PitchBook

TECH IN THE NEWSJust a short drive up I-15 in Lehi, Snap is opening a new R&D office in part to tap tech graduates from BYU. It acquired Scan Inc., a firm founded by BYU students, in 2015.

HOTTEST SUBMARKETAll along the I-15 corridor can be considered “hot” but Lehi, in the northern part of Utah County, has become dense with tech thanks to companies like Adobe, SirsiDynix and Ancestry.

TOP 25 TECH CITIES | PROVO, UT CUSHMAN & WAKEFIELD



$188.2M$174.2M

$352.8M

$236.4M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

PROVO, UT

STEM EMPLOYMENT

13,970VC FUNDING (Q3 2017 - Q2 2018)

$276.9M (Up by $230.6M since 2011)


10.8%



38.2%


107.4 U.S. 100CLASS A CBD OFFICE SALES $/PSF(% CHG. 2010 VS. Q2 2018)

33% U.S. 26%

We know what you may be thinking, “Provo?” Salt Lake City is already on the list and some may consider Provo one and the same. They are in fact two separate metropolitan statistical areas (MSAs) about 40 miles apart, essentially the same distance as San Francisco is to San Jose/Silicon Valley. It does happen to be the smallest MSA on the list; however, 10.8% of the jobs in Provo are classified as tech, plus it has the highest millennial population of any market in the report. DevMountain, founded here in 2013, is a school for coders occupying an old candy factory, appropriately named Startup. Provo is also the home of Brigham Young University (BYU) which has hundreds of IT graduates each year. Moreover, BYU has a focus on entrepreneurship leading to the creation of numerous start-ups in the area. Major tech employers include Vivint, Ancestry, Qualtrics, Domo, and Podium.

MARKET METRICS

When it comes to tech companies, the Triangle area has three main submarkets; Research Triangle Park/I-40 corridor, downtown Raleigh and downtown Durham. Each of these submarkets are unique and offer a variety of different amenities. The Research Triangle Park is home to large tech campuses for companies including Lenovo, IBM, Net App and Cisco thanks to its central Triangle location and proximity to the airport. As millennials have moved into the CBD areas and live-work-play trends have proliferated, both downtowns (Raleigh and Durham) have seen an explosion of startups and M&A activity. The CBD’s have become home to high growth companies like Ipreo, and Pendo (in Raleigh), and Nutanix, WeWork and Avalara (in Durham), but have also attracted tech heavyweights like Red Hat, Oracle, Google, Microsoft, and Citrix.

HOTTEST SUBMARKET

TECH IN THE NEWSIn 2018, the Triangle area saw a flurry of corporate expansions and relocations including Trialcard, Ipreo, Relias Learning, Pendo and Infosys. These companies are expected to bring 3,150 new jobs, investment of more than $2.1 million, and leases totaling more 500,000 sf of Class A office across the Raleigh-Durham market.

QUALITY OF LIFEThe area is consistently recognized as a top-10 location for millennials and families. What makes the Triangle area unique besides access to the Tier-1 Universities? Most residents will tell you a great quality of life as the Triangle is two hours from beaches to the east and the mountains to the west and North Carolina is home to nearly 600 golf courses.

TOP 25 TECH CITIES | RALEIGH-DURHAM CUSHMAN & WAKEFIELD

TECH SHARE OF LEASING ACTIVITY


35-45%

Tech leasing activity All other

*estimate

TOP 25 TECH CITIES

RALEIGH-DURHAM

STEM EMPLOYMENT

82,680VC FUNDING (Q3 2017 - Q2 2018)

$766.7M (Up by $296.3M since 2011)


10.9%



47.2%


101.3 U.S. 100


36% U.S. 26%CLASS A CBD ASKING RENT(2010 VS. Q2 2018)

43.1% U.S. 25%

The Raleigh-Durham/Triangle area’s thriving tech market is fueled by several components: innovative startups spinning out of the region’s nationally recognized Universities, research hospitals and large R&D companies found in the Research Triangle Park (the largest research park in North America). The Triangle is one of only seven areas in the U.S. that serves as a home to three separate Tier-1 research universities (Duke, University of North Carolina at Chapel Hill and North Carolina State). As a direct result, tech companies are able to recruit top talent from the abundant pipeline of college graduates. A favorable business climate and excellent quality of life combined with a growing entrepreneurship vibe helps create a dynamic environment for entrepreneurs and high growth companies.

MARKET METRICS

Frequently referred to as the “Crossroads of the West,” Salt Lake City is known for 10 world-class ski resorts within a one hour drive as well as a multitude of National and State Parks and red rock country. Salt Lake’s close proximity to numerous outdoor recreational activities, paired with the tranquility that comes with mountain living, makes it an ideal live-work-play environment.

QUALITY OF LIFE

Notable tech leasing activity (2017 through Mid-Year 2018)

TECH IN THE NEWSTech companies with a large established presence, like Adobe, as well as companies with an emerging local presence, like Podium, find fertile ground in Salt Lake for imminent expansion. Lehi-based Podium was ranked No. 13 on Inc. 5000’s 2018 list of fastest-growing companies in the nation and No. 1 in Utah.

HOTTEST SUBMARKETTech companies are located market-wide, but the “Silicon Slopes” in southern Salt Lake County (Southeast submarket) and northern Utah County continue to be a focal point due to the proximity to I-15, availability of new class A space with more developable land, and the synergy of being in a cluster with other tech companies.

TOP 25 TECH CITIES | SALT LAKE CITY CUSHMAN & WAKEFIELD

TOP TECH OCCUPIERS

Source: U.S. Bureau of Labor Statistics (statistics represent MSA), Moody’s Analytics, PitchBook, RCA, Cushman & Wakefield Research

348,200 sf

120,000 sf 112,900 sf 100,000 sf

60,000 sf

Pluralsight Lucid Software DealerTrackSystems

Podium InMoment

TOP 25 TECH CITIES

SALT LAKE CITY

STEM EMPLOYMENT

40,540VC FUNDING (Q3 2017 - Q2 2018)

$294.1M (Up by $129.3M since 2011)


8.2%

MILLENNIAL POPULATION (AGE 20-34)

23.3%


75%COST OF LIVING INDEX

109.2


13.1%

PERCENTAGE BACHELOR’S DEGREE OR HIGHER

33%

U.S. 100

U.S. 26%U.S. 25%

Salt Lake continues to attract new and expanding tech companies with its low cost of living, high quality of life, fast-growing job market, and young-educated population. The area has one of the highest percentage of millennials to total population in the nation and averages over 1,100 college graduates with Information Technology degrees annually from the top three local universities; Brigham Young University, University of Utah, Utah Valley University. Prominent tech companies like Adobe, eBay, IM Flash Technologies, and Ancestry benefit from this educational pipeline and provide growth momentum for this important industry.

MARKET METRICS

San Diego’s tech economy is anchored by the life science ecosystem around UCSD in Torrey Pines and the telecommunications companies clustering around Qualcomm in Sorrento Mesa. While Qualcomm recently reduced its local footprint, companies such as Illumina, Viasat and Nuvasive continue to expand their presence in the region. Sorrento Mesa offers a prime opportunity for life sciences companies seeking to expand as Torrey Pines is nearing capacity. Landlords have also encouraged this trend, renovating buildings to be flexible enough to accommodate both biotech and traditional office tenants.

HOTTEST SUBMARKET TECH LEASING ACTIVITY


TECH IN THE NEWSThe U.S. government blocked Broadcom’s attempt to acquire Qualcomm, preventing expected significant layoffs. Subsequently, China blocked Qualcomm’s attempt to acquire NXP Semiconductor, resulting in a stock buyback for the telecom company.

QUALITY OF LIFEWhile housing costs are high, the year-round sunshine that fosters an active outdoor lifestyle is exceptional. San Diego is a suburban, car-centric market, with its main population and employment hubs spread across the county. It does, however, boast one of the shortest commute times among major metros.

TOP 25 TECH CITIES | SAN DIEGO CUSHMAN & WAKEFIELD


16.1%

18.7%

2.3%8.6%

54.3%

Life Science Tech Telecom Defense All Other

TOP 25 TECH CITIES

SAN DIEGO

STEM EMPLOYMENT

96,810VC FUNDING (Q3 2017 - Q2 2018)

$2.2B (Up by $1.2B since 2011)


8.4%

MILLENNIAL POPULATION (AGE 20-34)


37.4%


128.3 U.S. 100

CLASS A OVERALL RENT(2010 VS. Q2 2018)

31.4%CLASS A CBD SALES PRICE $/PSF(% CHG. 2010 VS. Q2 2018)

35% U.S. 26%

With a complex military ecosystem, the University of California/San Diego (UCSD) and numerous research institutions, San Diego’s technology cluster has positioned the region as a hub for innovation in emerging sectors such as cybersecurity, aerospace, navigation and maritime, software, health IT, bioinformatics and cleantech. With established companies including Qualcomm and Intuit, as well as many innovative start-ups, San Diego firms are developing unique technologies that have global impact. San Diego’s research institutions account for $4.6 billion in the local economy and are the core of the region’s $14.4 billion scientific R&D cluster. San Diego also has the second-highest concentration of science and engineering professionals in the U.S. and has attracted $11.8 billion in venture capital in the last 10 years ($6.8 billion invested in healthcare/life sciences/medical devices).

MARKET METRICS

If there’s one disadvantage to an otherwise stellar San Francisco metro market, it’s the cost of living which is double the national average. It comes down to housing more than anything else with the median existing single-family home price in the MSA currently at $986,000 according to the National Association of Realtors and a median rental price of $3,450 per month according to Zillow. Though inventory is growing at a faster pace today, it’s still not enough especially for low and middle incomes. New housing is generally absorbed quickly, particularly those projects near walking or biking distance to a train transit node (Caltrain or BART) whether in San Francisco, the East Bay or the Peninsula.

QUALITY OF LIFETECH LEASING ACTIVITY


TECH IN THE NEWSFacebook has made a big move into San Francisco proper—having gone from having no space to almost 1.5 msf under lease in less than a year. The company is now the fourth largest private sector tenant in the City. Meanwhile, Salesforce has usurped Wells Fargo to become the largest private sector tenant in San Francisco.

HOTTEST SUBMARKET Tech has permeated every submarket of San Francisco but the South Financial District, in the core of the city, has been changed most significantly. The up-zoning of the area allowing for much larger office and residential projects along with the proximity to multiple mass-transit options have been major advantages. With South Financial almost completely built out now, growth will move due west to the Central SoMa submarket where up-zoning there will allow for a similar rebirth.

TOP 25 TECH CITIES | SAN FRANCISCO CUSHMAN & WAKEFIELD Source: U.S. Bureau of Labor Statistics (statistics represent MSA as of mid-year 2018), Moody’s Analytics, PitchBook, RCA, Cushman & Wakefield Research

70.3%64.6%

54.7%

24.3%20.2%

Peninsula San Francisco East Bay U.S. Tech Cities

TOP 25 TECH CITIES

STEM EMPLOYMENT

195,850VC FUNDING (Q3 2017 - Q2 2018)

$33.9B (Up by $23.7B since 2011)


12.3%



48.5%


172.8U.S. 100



133% U.S. 26%

SAN FRANCISCOThe boom continues for the San Francisco market, thanks to its deep tech foundation including the hundreds of companies within the industry based here, a deep talent pool, proximity to venture capitalists and multiple institutions of higher learning including two of the best in the world - Stanford University and UC Berkeley. In the initial period of the current economic expansion, it was all about home-grown start-up tech - some that grew rapidly and have since gone public and others of various sizes that remain private. Home-grown tech continues to be an important driver of the tech expansion (Salesforce, Dropbox, Airbnb, Uber, Lyft and Twitter for a few examples). But over the past two years, there has also been an in-migration of “big tech” headquartered in Silicon Valley and elsewhere— including Google, Facebook and Amazon—causing a substantial tightening of the market. With little new inventory coming online until at least 2022, it’s going to be tougher to grow bigger in San Francisco and it might just be “advantage Oakland” thanks to new office development opening in its CBD over the next three years. Meanwhile, down on the Peninsula, it’s a life sciences world except for the southern end closest to Silicon Valley where it remains almost all about an expanding social media firm in Menlo Park.

MARKET METRICS

Seattle has been one of the fastest-growing U.S. cities since 2010 and, according to Census Bureau estimates, is projected to add nearly 200,000 more people by 2030. The region ranks high in economic growth, education and health, but the perceived high cost of living, limited housing supply and traffic are causes for concern. Seattle’s housing market is one of the hottest and most expensive in the country, with no signs of a cool down any time soon. The rental market is just as pricey, nearly 80% higher than the national average. Traffic continually ranks in the top 10 ofU.S. cities with the longest averagecommute time.

QUALITY OF LIFE TECH LEASING ACTIVITY


TECH IN THE NEWSSince 2015, Facebook (and its subsidiary, Oculus) has expanded its footprint in the Seattle region from approximately 75,000 sf to over 1.8 msf, mostly in South Lake Union and Redmond. Thecompany’s headcount has quadrupled in the same period oftime (currently over 2,000 employees). Facebook is the fifth largest office occupier in the region.

HOTTEST SUBMARKETTech is prevalent in nearly every submarket, with the epicenterof Seattle tech and life sciences activity being South LakeUnion, a former industrial neighborhood that has transformedover the past 20 years into a thriving tech hub, mainly due toAmazon. On the Eastside, Redmond has flourished due toMicrosoft, Facebook, and Oculus’s ever-increasing footprints.

TOP 25 TECH CITIES | SEATTLE CUSHMAN & WAKEFIELD Source: U.S. Bureau of Labor Statistics (statistics represent MSA as of mid-year 2018), Moody’s Analytics, PitchBook, RCA, Cushman & Wakefield Research

30.8%

23.3%

2.9%

Seattle CBD Puget Sound - Eastside Seattle Suburban

TOP 25 TECH CITIES

SEATTLE

STEM EMPLOYMENT

189,200VC FUNDING (Q3 2017 - Q2 2018)

$2.6B (Up by $1.9B since 2011)


9.4%


22.8%U.S. 100COST OF LIVING INDEX

137.3PERCENTAGE BACHELOR’S DEGREE OR HIGHER

42%



16% U.S. 26%

The Puget Sound region’s growing status as a destination and home for tech talent is due to both homegrown companies (Amazon and Microsoft) and out-of-town companies (Facebook, Google, Salesforce and Oracle) as well as its major research institution, the University of Washington. Seattle is one of the top spots for relocation, with tech workers earning close to the global average salary and their salaries going further than those in competing markets. Amazon accounts for over 20% of the office inventory in downtown Seattle, and Facebook, Google and Expedia are planning to expand/move into Seattle’s downtown area in the next two years. With supply low in the Seattle CBD, tech users have been looking to the suburban and the Eastside submarkets for their real estate requirements. Meanwhile, Seattle’s life sciences industry makes its home in busy South Lake Union, the location of Amazon’s main campus. The limited options in downtown Seattle have prompted life science firms to expand into the suburban submarkets of Bothell and Redmond, where lab space is both more affordable and available.

MARKET METRICS

The Silicon Valley has incredible geographic diversity with close proximity to mountains, wine country, the Central Valley and the Pacific Ocean. The Sierra Nevada Mountains (and Lake Tahoe), Yosemite National Park, Napa Valley, Monterey/Carmel, and San Francisco are all within half a day’s drive or less. Silicon Valley is also blessed with world class academic institutions in its backyard, including Stanford University, the University of California at Berkeley, Santa Clara University, San Jose State University and UC Davis. Moreover, “The Valley” boasts some of the best weather in the U.S. The net effect of so many wonderful attributes, a high quality of life and job opportunities means the region suffers from an overburdened transit infrastructure and some of the most expensive housing in the entire county.



TECH IN THE NEWSRoku recently announced its move from Los Gatos to San Jose. It will occupy three buildings totaling 472,000 sf at Coleman Highline, a campus currently under construction near the city’s airport. San Jose has landed other major tech tenants this year such as 8X8, HPE, Bloom Energy and Micron Technology.

HOTTEST SUBMARKETPalo Alto and Mountain View have always been hot submarkets for tech startups due to their proximity to venture capitalists and access to transit. The lack of space to grow in those cities is causing companies to start to migrate south to Sunnyvale, Santa Clara and into the San Jose area, including downtown San Jose.

TOP 25 TECH CITIES | SILICON VALLEY CUSHMAN & WAKEFIELD


70.3%67.1% 64.6%

24.3%20.2%

Peninsula Silicon Valley San Francisco U.S. Tech Cities

TOP 25 TECH CITIES

SILICON VALLEY

STEM EMPLOYMENT

187,430VC FUNDING (Q3 2017 - Q2 2018)

$9.0B (Up by $3.8B since 2011)


27.5%



173PERCENTAGE BACHELOR’S DEGREE OR HIGHER

50.1%


106% U.S. 26%CLASS A ASKING RENT (2010 VS. Q2 2018)

33%

The Silicon Valley has been one of the strongest markets in the U.S. throughout this most recent economic cycle. “The Valley” serves as the global center for high technology, venture capital, innovation and social media. It accounts for one-third of all venture capital investment in the U.S., and that investment has helped this sprawling region become a leading hub and ecosystem for startups in high-tech innovation and scientific development. It is home to many of the world’s largest high-tech corporations including Apple, Google and Facebook. These three companies combined have accounted for an increase in R&D spending of roughly $20 billion per year since 2010. The major expansion of these companies has made it more difficult for other companies to find space; however, with its deep talent pool the proximity to the tech giants, the Silicon Valley is still where tech companies want to call home.

MARKET METRICS

Sun, sand and fun define South Florida and make it a magnet for millennials as well as international residents. The area offers a lower cost of living compared to other higher profile tech markets with businesses and investment dollars benefiting from Florida’s lack of an income tax and other tax advantages. Young workers also like South Florida because it is the most interconnected market in the state in terms of public transportation. Besides local options in each county, the recently inaugurated fast-moving Brightline train service between the downtowns of Miami, Ft. Lauderdale and West Palm Beach allows companies to draw workers from the larger region.

QUALITY OF LIFE


TECH IN THE NEWSMagic Leap, located in Broward County has raised over $203 billion in funding. In 2018 the company unveiled a proprietary augmented reality wearable technology that enables users to interact with digital devices in a completely visually cinematic way.

HOTTEST SUBMARKETKnown for hosting the international Art Basel which attracts celebrities and thousands of on-lookers every year, Wynwood is also at the forefront of the tech hub movement, with a robust network of incubators, accelerators, coding boot camps, and specialized co-working space dedicated to tech entrepreneurs.

TOP 25 TECH CITIES | SOUTH FLORIDA CUSHMAN & WAKEFIELD



10.8%

5.0%4.4%

Miami-Dade County Broward County Palm Beach County

TOP 25 TECH CITIES

SOUTH FLORIDA

STEM EMPLOYMENT

76,950VC FUNDING Q3 2017 - Q2 2018)

$1.4B (Up by $1.1B since 2011)


3.5%



30.5%


113.9 U.S. 100


34% U.S. 26%CLASS A CBD ASKING RENT(2010 VS. Q2 2018)

42.5% U.S. 25%

South Florida, which includes the major markets of Miami-Dade, Ft. Lauderdale and West Palm Beach, is the gateway to Latin America for most technology companies. Its rapidly growing “tech” community bridges different cultures and provides a melting pot where ideas can be developed into viable businesses that can impact a wider international community. Venture capital pours into South Florida and in recent years over $1.5 billion was invested in area companies which are the forefront of cutting-edge technologies including VR and simulation. The region’s universities spends over $550 million annually on technology-related research & development, placing it 24th among U.S. cities. The Kauffman Foundation’s 2017 Index of Startup Activity, which measures new business creation, ranked the Miami-Fort Lauderdale area No. 1 out of the 40 largest metro areas in the U.S. Over the past decade immigrant-rich South Florida typically ranked in the top five markets nationally for new business creation in Kauffman’s research.

MARKET METRICS

Like other popular global cities, Toronto is known for its cool, safe, walkable and vibrant communities. What makes it unique is its multicultural diversity, which has given rise to an incredibly varied restaurant, retail, entertainment, sports and arts/culture scene. Explosive development and population growth since 2009 has brought challenges, including a serious shortage of affordable housing, escalating housing prices, high rents and infrastructure issues.


TECH IN THE NEWSSamsung Research America’s recent announcement that it will establish a state-of-the-art AI Centre in Toronto is further proof that some of the most innovative AI research and startups are emerging in this city. The Toronto location will be Samsung’s second AI Centre in North America. Microsoft recently announced that it will relocate its Microsoft Canada headquarters to a new landmark development in the heart of downtown Toronto at 81 Bay Street, which will open in the fall of 2020.

HOTTEST SUBMARKETThe tech sector has historically been concentrated in the Downtown West and King West submarkets bordering the Downtown Core. The Downtown West submarket currently has an overall availability rate of only 1.7% and demand for the remaining space is ferocious. As startups take root and their space needs grow, tech companies are increasingly looking to more traditional office buildings to satisfy their space needs.

TOP 25 TECH CITIES | TORONTO CUSHMAN & WAKEFIELDSource: Statistics Canada (statistics represent MSA as of mid-year 2018), PwC, RCA, Cushman & Wakefield Research

Venture capital financing continues to be strong across Canadian markets, with Canadian venture-backed companies closing 116 deals during the second quarter of 2018. Total venture capital funding was $900 million (USD) and funding to Canadian artificial intelligence (AI) companies hit record highs. Toronto led the major markets in the second quarter with 33 deals and $290 million in venture capital raised (according to MoneyTree Canada Report by PwC Canada and CB insights).

$524M$578M

$779M

$611M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

TORONTO



52.0% U.S. 26%

VC FUNDING (Q3 2017 - Q2 2018)

$3.3B (Up by $2.9B since 2011)




7.0%STEM EMPLOYMENT

268,275

The Greater Toronto Area (GTA) has seen explosive tech-related office growth in recent years as companies reap the benefits of a vibrant market, offering a deep and growing pool of multinational workers, an excellent education system, and a high standard of living. Major educational institutions with world-class tech and AI-related degree programs include the University of Waterloo, the University of Toronto and Ryerson University, all of which support the tremendous demand for talent. Access to venture capital and fast-growing tech clusters are magnets for tech entrepreneurs from around the world, many of whom stay within the GTA as their concepts evolve into business opportunities. Startup incubator and accelerators include Ryerson DMZ, University of Toronto’s Banting and Best Centre for Innovation and Entrepreneurship, Next Canada and OneEleven. Downtown Toronto, in particular, has matured to become one of the world’s hot tech markets. Its hip urban live-work-play culture has attracted tech talent from around the globe and has fueled unprecedented condominium growth. The need to tap into this talent pool has been a key reason why new entrants and existing tech companies have migrated to—and transformed—the downtown market.

MARKET METRICS

British Columbia and its largest city seem to have it all: unparalleled natural beauty, temperate climate, trade access to the U.S. and Asia Pacific, a stable economy, abundant natural resources and more. Vancouver itself is a fast-paced, growing port city with a diversified sports, entertainment, arts and restaurant scene. However, the scarcity of land due to ocean and mountain barriers, along with insatiable demand for residential property, has pushed Vancouver’s cost of living to record highs and created related challenges such as affordable housing shortages and traffic congestion.


TECH IN THE NEWSIn 2018, Vancouver saw a surge of interest from both large multinational players and regional companies such as Amazon. The tech giant, which currently employs 1,000 researchers and engineers in the city, plans to hire an additional 1,000 workers at a second downtown location by 2020 and has additional expansion plans thereafter. An undisclosed technology company recently committed to a 100,000-square foot lease that commences in 2021 as part of an expansion/consolidation into a new Downtown Core development at 753 Seymour Street.

HOTTEST SUBMARKETWhile tech growth is the dominant driver of expansionary momentum across Vancouver’s downtown market, key urban office markets—including the Mount Pleasant area and the Gastown and Yaletown submarkets—have been magnets for smaller creative tech firms seeking space that is both hip and affordable. Those areas feature trendy spaces in industrial conversions and older brick-and-beam buildings which are ideally suited to these small companies’ creative needs.

TOP 25 TECH CITIES | VANCOUVER CUSHMAN & WAKEFIELD Source: Statistics Canada (statistics represent MSA as of mid-year 2018), PwC, RCA, Cushman & Wakefield Research

Venture capital financing continues strong across Canadian markets, with Canadian venture-backed companies closing 116 deals over the second quarter of 2018. Total venture capital funding was $900 million (USD). Vancouver hit an eight-quarter high with $126 million (USD) invested in Q2 2018 (according to MoneyTree Canada Report by PwC Canada and CB insights).

$321M

$250M

$372M

$229M

2015 2016 2017 Through June 30, 2018

TOP 25 TECH CITIES

VANCOUVER



56.0% U.S. 26%

VC FUNDING (Q3 2017 - Q2 2018)

$323.9M (Up by $232M since 2011)




6.1%STEM EMPLOYMENT

98,360

In “beautiful” British Columbia, the tech sector has infused an estimated $15 billion into the province’s GDP growth and now contributes about 7% to the economy. Tech employment has surpassed that of mining, oil, gas and forestry combined. This thriving sector is supported by a deep talent pool from world-class institutions like the University of British Columbia and Simon Fraser University.

Key success stories from the Greater Vancouver Area include the emergence of two “tech unicorns” (former startups that are now valued at over $1 billion): messaging software company Slack Technologies and Kabam, an interactive entertainment company. Along with tech monoliths Facebook, Microsoft, Sony Imageworks, SAP and Amazon, these firms have significant operations in Vancouver due to their ability to access a growing talent pool. A signal of Vancouver’s strong commitment to the tech industry was the creation of the startup Visa Program whose mission is to help enable immigrant entrepreneurs build tech businesses that are innovative, can create jobs for Canadians and can compete on a global scale.

MARKET METRICS

Proximity to the largest purchaser of goods and services in the world—the U.S. federal government—continues to be a driver for technology companies. In addition, co-location with competitive firms and access to a well-educated, technically proficient and stable workforce draw tech to the region. Millennials have flocked to the region in recent years as emerging neighborhoods, such as Shaw and Capital Riverfront, have made Washington, DC “cool” again.

The Washington, DC Metro’s business-friendly environment, in particular, has played no small role in the market’s outperforming the nation in term of attracting regionally and nationally competitive HQ operations. This is evidenced by the 30 Fortune 1000 companies that call the region home. Moreover, four of the ten counties across the nation with the highest median

incomes are situated in the region.



TECH IN THE NEWSAppian will relocate its headquarters from Reston, VA to 205,000 sf in the nearby tech hub of Tysons Corner, as it plans to add 600 jobs locally.

HOTTEST SUBMARKETWashington, DC’s East End and Northern Virginia’s Tysons Corner, Reston and Herndon submarkets.

TOP 25 TECH CITIES | WASHINGTON, DC METRO CUSHMAN & WAKEFIELD


27.8%

22.1%

Mid-year 2018 2017

TOP 25 TECH CITIES

WASHINGTON, DC METRO

STEM EMPLOYMENT

312,430VC FUNDING (Q3 2017 - Q2 2018)

$1.1B (Up by $19.9M since 2011)


10.0%



117.3PERCENTAGE BACHELOR’S DEGREE OR HIGHER

50.2%



29% U.S. 26%

Larger tech companies continue to grow and pop up across the Washington, DC metropolitan area as traditional tech startups expand their footprints and choose to remain in the region. Proximity to the federal government infrastructure is important for tech firms due to their ever-increasing influence on government policy. The increasing presence of these companies—coupled with the region’s healthy economy and highly educated workforce-- keeps the Washington, DC Metro a top destination for technology firms.

Additionally, the region has one of the world’s most abundant data center markets. Over 70 percent of the world’s internet traffic runs through Northern Virginia. Also, 55 of the world’s 500 fastest growing cybersecurity companies are headquartered in the region.

Documents

ATLANTAcushwaketesting.com/webmaps/tech-cities/PDFs/TechCities...Earlier this year, NCR relocated its 277,000-sf HQ from the Atlanta suburbs to a 480,000-sf built-to-suit building