Technology companies are becoming very popular in Arizona, newly dubbed the Silicon Desert. There are three core reasons that so many tech companies have such a strong attraction to Phoenix in particular, as indicated in JLL’s U.S. Technology Outlook.
It’s a place where a higher standard of living costs a lot less, there’s a budding and flourishing pool of talent, as well as lower costs for businesses. The experts at Paracore for example, are investing strongly in providing PPC services for Arizona tech businesses, that can use their enormous savings to create effective marketing campaigns.
The average rent for office space in Phoenix is $24.22 per square foot. Compared to Silicon Valley, San Fransisco and Seattle, whose average costs per square foot can be over $100, it’s a considerable savings. Phoenix’s most affluent areas for amenities, including Tempe and Scottsdale, reach only $29.12 and $31.26 in average rent costs.
Generally speaking, Arizona costs less money for a higher standard of living as well, with about half the cost of living in San Fransisco. In terms of employee salary costs, you’re looking at an average of $91,794 for tech positions in Arizona.
That saves an Arizona tech company about 60% when compared to Silicon Valley, and about 50% when compared to San Fransisco. It’s immensely attractive to talent in tech who are considering working here, especially those with higher education and skills.
While new features like Facebook’s estimated ad recall lift are clearly commanding a vibrant and innovative talent pool in California, Arizona is hot on its heels. Consider that the main established markets in tech are paying more than what they’re receiving in value, just to keep their employees from swapping to a higher-paid position. Meanwhile, entities in Phoenix, along with 3D printing companies, are reaping the benefits of the availability of talent.
Phoenix’s metro population is made up of 22% millennial-generation people. Almost 30% of the 4.6 million inhabitants hold bachelor degrees or higher. By 2021, it’s estimated that 24.2% of the metro population in Phoenix will be between the ages of 18 and 34.
Arizona State University, which is recognized by the U.S. News & World Report as the Number One Most Innovative School in America two years in a row, is just one of the prestigious institutions located in Metro Phoenix. With more than 300,000 students in the area, this university provides about 21,000 degrees each year. It’s part of what will continue to make it a hot spot for tech companies in the future as well.
In terms of community college systems, Phoenix’s Maricopa Community Colleges are home to more than 265,000 students. When asked about their intentions on where they’d like to live and work, most of these students say they want to stay in Arizona and enjoy the standard of living that their education makes possible for them in their tech market.
For tech companies that are looking to start companies on the West Coast of the United States, Arizona is really the ideal place. You can have a lot more staff at near half the price of leading tech locations, especially for small business that need to spend money wisely. It’s not just about the ability to increase a company’s exposure online, but about the real networking opportunities with skilled workers in the area.
There’s also the advantage of real estate, whether you’re looking for office space for dozens of key employees, or additional offices for customer support, marketing and more. With this trend in mind, we can certainly expect Arizona’s tech market to thrive and prosper, and for more large companies to strongly consider a move.