The fast-growing technology sector is expanding its geographical reach, bringing good news for both commercial and residential real estate
The fast-growing technology sector is expanding its geographical reach, bringing good news for both commercial and residential real estate.
The sector, once heavily focused on San Francisco’s Silicon Valley and New York’s Silicon Alley, is now growing in smaller towns in the South and Midwest.
Real estate valuation firm BBG says that tech firms are favoring cities such as Cleveland, New Orleans, Austin, Nashville, and Raleigh-Durham, NC.
"America's tech eco-system is rapidly expanding beyond large urban areas as a result of companies easily acquiring the resources they need in smaller metropolitan areas, enabling them to remain innovative in a competitive landscape,” explained BBG’s CEO Chris Roach.
Government figures show that almost half of net establishments of tech sector businesses were outside the 35 largest metros, in the previous 7 years less than one fifth were.
While the office sector is benefitting from the expanding tech sector, it is also good news for housing markets with investment in the local economy and generally well-paid roles being created.
The BBG report does not mean the beginning of the end for the more established tech centers though.
“While the country's large, established tech hubs will stay active, the small and mid-sized cities will be well-positioned to attract more tech business in the years ahead, resulting in strong economic activity overall in those areas," added Roach.
The sector, once heavily focused on San Francisco’s Silicon Valley and New York’s Silicon Alley, is now growing in smaller towns in the South and Midwest.
Real estate valuation firm BBG says that tech firms are favoring cities such as Cleveland, New Orleans, Austin, Nashville, and Raleigh-Durham, NC.
"America's tech eco-system is rapidly expanding beyond large urban areas as a result of companies easily acquiring the resources they need in smaller metropolitan areas, enabling them to remain innovative in a competitive landscape,” explained BBG’s CEO Chris Roach.
Government figures show that almost half of net establishments of tech sector businesses were outside the 35 largest metros, in the previous 7 years less than one fifth were.
While the office sector is benefitting from the expanding tech sector, it is also good news for housing markets with investment in the local economy and generally well-paid roles being created.
The BBG report does not mean the beginning of the end for the more established tech centers though.
“While the country's large, established tech hubs will stay active, the small and mid-sized cities will be well-positioned to attract more tech business in the years ahead, resulting in strong economic activity overall in those areas," added Roach.
