San Francisco Bay Area and Seattle remain the highest quality
despite cost escalations, with the best value markets led by four
LOS ANGELES--(BUSINESS WIRE)--Jul. 26, 2018--
Companies in pursuit of highly skilled tech talent – spanning every
industry today – face combined talent and occupancy costs that are as
much as 12.5 percent higher than last year as competition for tech
talent has heated up, according to CBRE’s
sixth annual Scoring
Tech Talent report.
Taking both talent and real estate costs into consideration, the
“typical” 500-person tech company needing 75,000 sq. ft. of office space
can expect a total annual cost to range from $27 million in Montreal,
the least expensive market, to $59 million in the San Francisco Bay
Area, the most expensive market. Just a year ago, the total costs ranged
from $24 million in Vancouver to $57 million in the San Francisco Bay
Canadian markets were among the best-value markets, due in part
to the strong U.S. dollar, with Toronto, Vancouver, Montreal and Ottawa
offering high-quality talent at relatively low cost. In the U.S.,
Indianapolis, Pittsburgh and Detroit were strong value markets.
CBRE's interactive Tech
Talent Analyzer found the San Francisco Bay Area, Austin and
Seattle to be the most competitive markets to hire tech talent based on
labor market supply/demand, wage costs and talent quality.
Tech Talent Scorecard
The top five markets for tech talent in 2018 were the San Francisco Bay
Area, Seattle, Washington, D.C., Toronto (the first time a Canadian
market made the top five) and New York.
The Tech Talent Scorecard is determined based on 13 unique metrics,
including tech talent supply, growth, concentration, cost, completed
tech degrees, industry outlook for job growth, and market outlook for
both office and apartment rent cost growth. The top 10 cities on the
Tech Talent Scorecard were all large markets, each with a tech labor
pool of more than 50,000.
“Tech employment growth has a multiplier effect that positively impacts
economic growth, which in turn can have an immense impact on commercial
real estate,” said Colin
Yasukochi, director of research and analysis for CBRE in the San
Francisco Bay Area.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company
headquartered in Los Angeles, is the world’s largest commercial real
estate services and investment firm (based on 2017 revenue). The company
has more than 80,000 employees (excluding affiliates), and serves real
estate investors and occupiers through approximately 450 offices
(excluding affiliates) worldwide. CBRE offers a broad range of
integrated services, including facilities, transaction and project
management; property management; investment management; appraisal and
valuation; property leasing; strategic consulting; property sales;
mortgage services and development services. Please visit our website at www.cbre.com.
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Source: CBRE Group, Inc.
CBRE Group, Inc.