JLL’s 2014 High-Tech Office Outlook reveals what makes a market dynamic and how 34 markets make the grade
JLL’s report, which helps high-tech companies make informed expansion decisions and provides insight for investors, features the top 34 high-tech markets across the country.* JLL’s report reveals how new and unexpected tech hubs like Detroit and Charlotte are getting a piece of the action. To see the market ranking click here.
Follow the Hipsters
While the high-tech industry’s growth is driving employers to find new locations for both talent and real estate, traditional high-tech cities are not exactly struggling. Long-standing hubs continue to function as the industry’s economic engines; in fact, seven traditionally high-tech-centric markets represent more than a fifth (21.7 percent) of the 65.4 million square feet of office space under construction across the country.
The following emerging centers have their own unique appeal to high-tech firms:
- Detroit – Connected Cars and Ready Labor: High-tech growth in the Motor City has been expanding thanks to increasing demand for sophisticated vehicle technology. The Motor City also has its fair share of traditional high-tech companies, including Compuware, one of the first companies to move its headquarters from the suburbs to downtown Detroit in recent years. Amazon, Microsoft, Twitter and Google have now joined Compuware in the urban core; Google even announced it would soon launch a Michigan-based fleet of 100 self-driving vehicle prototypes.
- Charlotte – Fintech Explosion: A financial technology (“fintech”) start-up culture is rising here, largely serving the back-office functions for large banks. Evidence can be seen in innovation hubs like the Packard Place building in its central business district. As the state continues to dole out incentives, Charlotte will see relocations like Spectra, a fintech firm bringing 250 or more jobs downtown.
- Los Angeles – New Tech, Old Hollywood: Los Angeles’ Westside is home to a burgeoning group of companies at the confluence of high-tech and entertainment. Video game creator Riot Games is likely to be joined soon by Google and advertising mogul RPA, both are actively looking for space nearby.
- Indianapolis – STEM Central: The talent pool from local universities producing graduates in the mathematics and science (STEM) fields is a main draw for tech companies to Indy. In addition, Indiana has one of the lowest business tax climates in the U.S., making it attractive to young start-ups and high-growth, middle-market high-tech firms. For example, California-based Systems in Motion is adding 400 jobs by 2017 and leasing new space in suburban Kokomo and Carmel.
- Orlando – It’s a Tech World After All: Over the past year, high-tech has become Orlando’s second largest industry with a $14 billion annual economic impact to the metropolitan area. Buildings like the Church Street Exchange – a former mall re-purposed for tech companies – have gone from mostly vacant to more than 90 percent leased in less than a year. Initiatives like the technology accelerator Starter Studio and Orlando’s Digital Main Street program are also cultivating high-tech growth.
- South Florida – South Beach, South Valley: Miami is getting some buzz as an international high-tech hub, with Microsoft announcing Miami as its first U.S. based Innovation Center at the downtown incubator Venture Hive. However, incubators such as the FAU Research Park in Boca Raton and LAB Miami, located in the burgeoning Wynwood District, tend to feature space that caters more to creative needs. More established high-tech companies with an eye on Latin America are beginning to show interest too.
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JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $50.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.