San Diego jumped ten spots to rank #6 across all top tech markets
San Diego – A new CBRE report ranks San Diego among the top ten fastest-growing high-tech job markets in the U.S. with a growth rate of 19.7 percent over the last two years. The company’s annual Tech-30 report measures the tech industry’s impact on office rents in the 30 leading technology markets in the U.S. and Canada.
San Diego also ranked in the top 20 for office market rent growth, with an 8 percent increase between Q2 2017 and Q2 2019. The region saw nearly 6,000 new high-tech jobs created in 2017 and 2018, accounting for 77.5 percent of all new office jobs. San Diego now has more than 35,000 high-tech software/services jobs.
“I am very excited about the growth trajectory of the San Diego tech market,” said Andrew Ewald, first vice president in CBRE’s San Diego office. “Our research centers and universities continue to groom a world class labor supply that constantly innovates and develops new technologies, which leads to business growth.” He added, “San Diego is now home to numerous disruptive technologies that help introduce an entirely new base of companies to our market. In addition, there are three local tech companies who have reached unicorn status in the past year, which sends a message to the tech sector and venture capitalists that we have an ecosystem to support high growth companies.”
Venture capital investment in San Diego tech companies in H1 2019 exceeded the annual total of 2018. Robotics, automation, cybersecurity and SaaS platforms are the fastest-growing tech subsectors in San Diego, with three locally based tech companies exceeding the $1 billion valuation threshold for unicorn status in the past year. Major Bay Area tech companies have expanded in San Diego or are
inquiring about potential expansion opportunities.
Top Tech-30 Markets For Two-Year High-Tech Job Growth Rate
|
Market |
Two-Year Tech Job Growth Rate |
Two-Year Tech Job Gain by Volume |
As a % of New Office Jobs |
|
Vancouver |
29.5% |
13,600 |
55.5% |
|
San Francisco |
24.7% |
19,947 |
84.7% |
|
Toronto |
23.9% |
30,200 |
72.6% |
|
Seattle |
23.7% |
34,536 |
131.2% |
|
Austin |
22.5% |
10,517 |
60.4% |
|
San Diego |
19.7% |
5,860 |
77.5% |
|
New York |
14.8% |
15,259 |
29.0% |
|
Silicon Valley |
14.7% |
27,720 |
76.7% |
|
Salt Lake City |
14.3% |
6,879 |
34.9% |
|
Denver |
13.8% |
8,544 |
42.2% |
“The North American tech industry has diversified its economic base as it has grown, expanding its presence in many Tech-30 markets,” said Colin Yasukochi, Executive Director for research for CBRE’s Tech and Media Insights Center and co-author of the report. “Meanwhile, large tech companies have been an ongoing source of demand; The 10 most active tech companies leasing office space since 2013 account for 27 percent of overall tech-industry leasing.”
To read the full report, click here.
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 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 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.
