The Booming Tech Scene In S.F. Is Making It Hard For Other Companies To Penetrate The Market
S.F. is bursting from economic growth and job creation thanks to the saturation of tech companies in the market. But the booming tech scene also is challenging the city’s economic diversity.
Costs to penetrate the market are skyrocketing and some employers in S.F. are leaving for more cost-efficient markets. The city has become somewhat inhospitable for other companies to get a start, the Wall Street Journal reports.
Take the building at 215 Fremont St. In the past, it was filled with financial-services companies, such as Charles Schwab. Now the building is being taken over by tech companies—Fitbit Inc, the firm behind the wearable fitness tracker, has been absorbing Charles Schwab’s 310k SF for some time, and Schwab has been shedding jobs and relocating employees to low-cost cities, such as those in Texas. [WSJ]