The technology industry continues to thrive across the United States and has become one of the strongest industries related to economic growth. According to a new report from JLL Technology Office, a firm that specializes in commercial real estate services and investment management, Denver ranks number four on the list of cities emerging as new technology hotspots. Other cities in the top five include: San Francisco, Washington DC, New York City and Chicago.
The report examines markets across the country for their attractiveness to the technology industry. In its evaluation, JLL based its ranking on each city’s market score, a tool for real estate investors to determine momentum and potential investment opportunity. According to the report, JLL used the following factors when determining each market score:
- Tech economic momentum: Job and industry growth help determine the velocity of tech expansions in a given market.
- Talent pool: Educational attainment and the population of millennials are used to determine the quality and depth of the tech talent pool.
- Startup friendliness: Startup concentration, the level of growth in patents registered, the presence of a major high-tech headquarters company and access to venture capital funding are taken into account.
- Market factors: The cost of office space, housing and market dynamism factors are weighed here.
Through the use of the JLL locator matrix, Denver was ranked as a place where real estate and talent costs are relatively affordable, but rising, and has all the elements in place to increase startup and tech company growth.
Denver’s market score and locator matrix position explained. Photo Source: JLL
While Denver is booming as an emerging tech center, its biggest challenge is attracting new talent. The report says, “Denver’s workforce is highly-educated, with a high demand for skilled tech employees as the industry is growing. One of Denver’s biggest challenges has long been retaining and attracting tech talent, specifically computer programmers.”
According to Mandy Seyfried, a senior research analyst for JLL, “In Denver, the right office in the right location makes it much easier to hire, retain and attract top talent which helps build a strong company culture.”
To see the full report, check out JLL’s website.