New Silicon Valleys Sprout up Across the US
Silicon Valley tech firms are branching out as new college graduates flock to other metros, creating new tech hubs around the country.
Some factors tech-oriented Millennials seek are affordable cities with a work/life balance and plenty of amenities, particularly cities that offer a lot of outdoor activities, according to GlobeSt.
For instance, Austin, TX, scores well in all of these areas, and its tech sector is booming. With an average asking rent of $32.59 per SF, the hub is the 10th-highest of 37 markets analyzed in JLL's latest US Technology Office Outlook.
And its 15% annual job growth—second only to San Francisco—will likely continue to keep talent coming. Major tech firms are also opening offices in the secondary and tertiary markets to accommodate growth.
Some developers are keeping high-tech office prices down by rehabbing rundown industrial buildings in underutilized submarkets. For example, four years ago Worthe Real Estate Group and Shorenstein Properties dropped $44M on a former postal distribution building at 13031 W Jefferson Blvd in LA's Silicon Beach neighborhood.
They installed 25-foot, floor-to-ceiling glass walls to flood the building with light, and created a 50 x 200 open space called The Reserve, with a 60k SF park with WiFi and volleyball courts. It's unclear how long this tech expansion will last, but JLL's head of research seems to think it'll be a long time before it expires. [GS]
Pictured: Austin, TX skyline
