Phoenix Is Luring Tech Companies
Tech isn't just on the coasts. In 2016 and beyond, tech tenants are going to be an important source of demand in greater Phoenix. (That explains why we see more people wearing sneakers with dress pants.) JLL SVP and tenant rep guru Keith Lammersen gave us the details.
Many northern California and Pacific Northwest companies "dip their toes in the Phoenix market," Keith says. "Then they realize the depth of our labor pool, and how attractive real estate costs are." Compared with Silicon Valley, for instance, real estate costs in Phoenix's tech submarkets are vastly lower—about 78% lower on average.
Not only that, tech companies that come to Phoenix, or expand here, will soon have plenty of attractively priced, build-to-suit opportunities, according to JLL's Tech Outlook Report. Phoenix has more than 3.9M SF of office space under development, which will likely include competitively priced build-to-suit, including incentives. In the shorter term, though, Keith notes that tech tenants must compete for space within top submarkets like the Southeast Valley and Scottsdale, where vacancy rates have tightened.