SlideShare a Scribd company logo

JLL's Top Tech Cities Presentation

Matthew Astrachan shares Jones Lang LaSalle's recent presentation exploring demand, leasing, venture capital, and growth in the commercial real estate market's tech world.

1 of 32
Download to read offline
Technology
Office
Outlook
United States
2015
JLL TECHNOLOGY OFFICE OUTLOOK
tech’s
firmly planted roots
as well as opportunities
for branching out.In examining
markets across
the country for their
attractiveness to the
technology industry,
we hope to showcase…
< 2 0 1 5 >
WHAT WE LEARNED < 2 0 1 5 >
Proximity to a hub is not
necessarily enough: Local
markets with an existing tech
cluster that are also more
affordable than the Bay Area
will likely experience
accelerated industry growth
as firms explore new markets
for expansion.
1. Secondary markets are
quickly catching up:
In 2015, roughly 60% of
unicorn companies were
located in San Francisco
and Silicon Valley, down
from almost 76% in 2014.
2. Startup momentum will
cost you:
Markets with the greatest
startup momentum,
characterized by access to
capital, innovation and top
talent (such as New York,
San Francisco and Silicon
Valley), are also the most
expensive.
3.
EXAMINING 4 QUESTIONS < 2 0 1 5 >
1. Where are
companies leasing
space and
expanding?
3. Where are venture
capitalists placing
their bets?
4. What markets
will become the
next hotspots?
2. Where is the real
estate cost highest
and where can you
find both value and
talent to
grow your
company?
JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 >
TECH is the elusive linchpin that
separates the growing
companies from those that
are shrinking
JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 >
73%
of technology
leases
represented
occupancy
growth

Recommended

Demand for new technology space is not slowing down
Demand for new technology space is not slowing downDemand for new technology space is not slowing down
Demand for new technology space is not slowing downJLL
 
Top tech cities: Exploring demand, leasing growth, VC funding and more
Top tech cities: Exploring demand, leasing growth, VC funding and more Top tech cities: Exploring demand, leasing growth, VC funding and more
Top tech cities: Exploring demand, leasing growth, VC funding and more JLL
 
White Star Capital Canadian Venture Capital Landscape 2019
White Star Capital Canadian Venture Capital Landscape 2019White Star Capital Canadian Venture Capital Landscape 2019
White Star Capital Canadian Venture Capital Landscape 2019White Star Capital
 
CXC Global - Engaging The World Wide Workforce In The 21st Century, Flat-Worl...
CXC Global - Engaging The World Wide Workforce In The 21st Century, Flat-Worl...CXC Global - Engaging The World Wide Workforce In The 21st Century, Flat-Worl...
CXC Global - Engaging The World Wide Workforce In The 21st Century, Flat-Worl...Orla Antoinette Byrnes
 
Matt Astrachan: Historical Walking Tours of NYC
Matt Astrachan: Historical Walking Tours of NYCMatt Astrachan: Historical Walking Tours of NYC
Matt Astrachan: Historical Walking Tours of NYCMatt Astrachan
 
Matt Astrachan: JLL's Perspective on Top Ten CRE Global Trends for 2016
Matt Astrachan: JLL's Perspective on Top Ten CRE Global Trends for 2016Matt Astrachan: JLL's Perspective on Top Ten CRE Global Trends for 2016
Matt Astrachan: JLL's Perspective on Top Ten CRE Global Trends for 2016Matt Astrachan
 
Is Lower Manhattan the New Silicon Valley?
Is Lower Manhattan the New Silicon Valley?Is Lower Manhattan the New Silicon Valley?
Is Lower Manhattan the New Silicon Valley?Matt Astrachan
 

More Related Content

Similar to JLL's Top Tech Cities Presentation

Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...
Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...
Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...Anne Bayro
 
Exit Strategies - CVCF May 2005
Exit Strategies - CVCF May 2005Exit Strategies - CVCF May 2005
Exit Strategies - CVCF May 2005Dave Liu
 
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...JLL
 
Cre tech year end report 2015
Cre tech year end report 2015Cre tech year end report 2015
Cre tech year end report 2015Coy Davidson
 
Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry PwC
 
Skywork Solutions INC.
Skywork Solutions INC.Skywork Solutions INC.
Skywork Solutions INC.Levi Saada
 
Angels Forum
Angels ForumAngels Forum
Angels ForumDave Liu
 
Building Deep Tech Startups Outside Silicon Valley
Building Deep Tech Startups Outside Silicon ValleyBuilding Deep Tech Startups Outside Silicon Valley
Building Deep Tech Startups Outside Silicon ValleyHAX
 
Accel Cloud Europe 2017: The factory is Cranking
Accel Cloud Europe 2017: The factory is CrankingAccel Cloud Europe 2017: The factory is Cranking
Accel Cloud Europe 2017: The factory is CrankingPhilippe Botteri
 
Webinar Slides - Building Your Minimum Innovation Strategy
Webinar Slides - Building Your Minimum Innovation StrategyWebinar Slides - Building Your Minimum Innovation Strategy
Webinar Slides - Building Your Minimum Innovation StrategyEngage // Innovate
 
Telco2 business models and opportunities briefing may 2013
Telco2   business models and opportunities   briefing may 2013Telco2   business models and opportunities   briefing may 2013
Telco2 business models and opportunities briefing may 2013Simon Torrance
 
Rory O’Driscoll - The war is over and the cloud won. What comes next?
Rory O’Driscoll - The war is over and the cloud won. What comes next?Rory O’Driscoll - The war is over and the cloud won. What comes next?
Rory O’Driscoll - The war is over and the cloud won. What comes next?SaaStock
 
FinTech, automation and the future of work
FinTech, automation and the future of workFinTech, automation and the future of work
FinTech, automation and the future of workClaire Ingram Bogusz
 
Cisco Case Analysis
Cisco Case AnalysisCisco Case Analysis
Cisco Case Analysisperk2624
 
AI Enablement of Business Services
AI Enablement of Business ServicesAI Enablement of Business Services
AI Enablement of Business ServicesCatalyst Investors
 
Software Outsourcing Market Trends, Survey & Analysis
Software Outsourcing Market Trends, Survey & AnalysisSoftware Outsourcing Market Trends, Survey & Analysis
Software Outsourcing Market Trends, Survey & AnalysisNexSoftsys
 

Similar to JLL's Top Tech Cities Presentation (20)

Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...
Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...
Scoring Tech Talent_ Influencing Innovation_ Economic and Real Estate Growth ...
 
Nest New York Introduction
Nest New York IntroductionNest New York Introduction
Nest New York Introduction
 
Exit Strategies - CVCF May 2005
Exit Strategies - CVCF May 2005Exit Strategies - CVCF May 2005
Exit Strategies - CVCF May 2005
 
Tech talent 2018
Tech talent 2018Tech talent 2018
Tech talent 2018
 
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...
Leading the Change in Emerging Markets: Corporate Real Estate trends in Techn...
 
Cre tech year end report 2015
Cre tech year end report 2015Cre tech year end report 2015
Cre tech year end report 2015
 
Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry Evolving landscape of technology deals: Semiconductor Industry
Evolving landscape of technology deals: Semiconductor Industry
 
Skywork Solutions INC.
Skywork Solutions INC.Skywork Solutions INC.
Skywork Solutions INC.
 
Angels Forum
Angels ForumAngels Forum
Angels Forum
 
Building Deep Tech Startups Outside Silicon Valley
Building Deep Tech Startups Outside Silicon ValleyBuilding Deep Tech Startups Outside Silicon Valley
Building Deep Tech Startups Outside Silicon Valley
 
Accel Cloud Europe 2017: The factory is Cranking
Accel Cloud Europe 2017: The factory is CrankingAccel Cloud Europe 2017: The factory is Cranking
Accel Cloud Europe 2017: The factory is Cranking
 
2020 tech talent july
2020 tech talent july2020 tech talent july
2020 tech talent july
 
Digital Disruption Commercial Real Estate
Digital Disruption Commercial Real EstateDigital Disruption Commercial Real Estate
Digital Disruption Commercial Real Estate
 
Webinar Slides - Building Your Minimum Innovation Strategy
Webinar Slides - Building Your Minimum Innovation StrategyWebinar Slides - Building Your Minimum Innovation Strategy
Webinar Slides - Building Your Minimum Innovation Strategy
 
Telco2 business models and opportunities briefing may 2013
Telco2   business models and opportunities   briefing may 2013Telco2   business models and opportunities   briefing may 2013
Telco2 business models and opportunities briefing may 2013
 
Rory O’Driscoll - The war is over and the cloud won. What comes next?
Rory O’Driscoll - The war is over and the cloud won. What comes next?Rory O’Driscoll - The war is over and the cloud won. What comes next?
Rory O’Driscoll - The war is over and the cloud won. What comes next?
 
FinTech, automation and the future of work
FinTech, automation and the future of workFinTech, automation and the future of work
FinTech, automation and the future of work
 
Cisco Case Analysis
Cisco Case AnalysisCisco Case Analysis
Cisco Case Analysis
 
AI Enablement of Business Services
AI Enablement of Business ServicesAI Enablement of Business Services
AI Enablement of Business Services
 
Software Outsourcing Market Trends, Survey & Analysis
Software Outsourcing Market Trends, Survey & AnalysisSoftware Outsourcing Market Trends, Survey & Analysis
Software Outsourcing Market Trends, Survey & Analysis
 

Recently uploaded

The Green Sapphirre Township Kalyan w
The  Green Sapphirre  Township  Kalyan wThe  Green Sapphirre  Township  Kalyan w
The Green Sapphirre Township Kalyan wSUJEET SINHA
 
Akura Villas - Uluwatu Seaview Villas...
Akura Villas - Uluwatu Seaview Villas...Akura Villas - Uluwatu Seaview Villas...
Akura Villas - Uluwatu Seaview Villas...Buğra Kaan Ayaz
 
Litus Istanbul Uskudar English Catalog -
Litus Istanbul Uskudar English Catalog -Litus Istanbul Uskudar English Catalog -
Litus Istanbul Uskudar English Catalog -Listing Turkey
 
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdf
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdfJoyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdf
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdfManishSaxena95
 
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...INVESTINSPAIN.BE
 
Purva Blubelle Magadi Road-E-Brochure.pdf
Purva Blubelle Magadi Road-E-Brochure.pdfPurva Blubelle Magadi Road-E-Brochure.pdf
Purva Blubelle Magadi Road-E-Brochure.pdfpropertiesindia860
 
Lake Lanier Home Sales Analysis January 2024
Lake Lanier Home Sales Analysis January 2024Lake Lanier Home Sales Analysis January 2024
Lake Lanier Home Sales Analysis January 2024Arthur Prescott
 
SVN Live 2.26.24 Weekly Property Broadcast
SVN Live 2.26.24 Weekly Property BroadcastSVN Live 2.26.24 Weekly Property Broadcast
SVN Live 2.26.24 Weekly Property BroadcastSVN International Corp.
 
Kolte Patil Atmos Hinjewadi Pune E-Brochure.pdf
Kolte Patil Atmos Hinjewadi Pune  E-Brochure.pdfKolte Patil Atmos Hinjewadi Pune  E-Brochure.pdf
Kolte Patil Atmos Hinjewadi Pune E-Brochure.pdfManishSaxena95
 
Flats in Thrissur - The Most Trusted Builders in Thrissur
Flats in Thrissur - The Most Trusted Builders in ThrissurFlats in Thrissur - The Most Trusted Builders in Thrissur
Flats in Thrissur - The Most Trusted Builders in ThrissurSnehaPrakashkp
 
Brigade ECR Resort Chennai-E-Brochure.pdf
Brigade ECR Resort Chennai-E-Brochure.pdfBrigade ECR Resort Chennai-E-Brochure.pdf
Brigade ECR Resort Chennai-E-Brochure.pdfpropertiesindia860
 
Mana Jardin Neo Sarjapur Bangalore.pdf.pdf
Mana Jardin Neo Sarjapur Bangalore.pdf.pdfMana Jardin Neo Sarjapur Bangalore.pdf.pdf
Mana Jardin Neo Sarjapur Bangalore.pdf.pdfkratirudram
 
San Francisco January 2024 Market Report
San Francisco January 2024 Market ReportSan Francisco January 2024 Market Report
San Francisco January 2024 Market ReportRonny Budiutama
 
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings County
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings CountyUnique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings County
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings CountyPrestige Kings County
 
Luxury Home Marketing | North America FEB 2024
Luxury Home Marketing | North America FEB 2024Luxury Home Marketing | North America FEB 2024
Luxury Home Marketing | North America FEB 2024Lynne Watanabe-MacFarlane
 

Recently uploaded (15)

The Green Sapphirre Township Kalyan w
The  Green Sapphirre  Township  Kalyan wThe  Green Sapphirre  Township  Kalyan w
The Green Sapphirre Township Kalyan w
 
Akura Villas - Uluwatu Seaview Villas...
Akura Villas - Uluwatu Seaview Villas...Akura Villas - Uluwatu Seaview Villas...
Akura Villas - Uluwatu Seaview Villas...
 
Litus Istanbul Uskudar English Catalog -
Litus Istanbul Uskudar English Catalog -Litus Istanbul Uskudar English Catalog -
Litus Istanbul Uskudar English Catalog -
 
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdf
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdfJoyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdf
Joyville Celestia At SP Kingstown Hadapsar Annexe Manjri, Pune E-Brochure.pdf
 
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...
Villa Monte Mayor Move-in ready 7 bedroom property with sea views - INVESTINS...
 
Purva Blubelle Magadi Road-E-Brochure.pdf
Purva Blubelle Magadi Road-E-Brochure.pdfPurva Blubelle Magadi Road-E-Brochure.pdf
Purva Blubelle Magadi Road-E-Brochure.pdf
 
Lake Lanier Home Sales Analysis January 2024
Lake Lanier Home Sales Analysis January 2024Lake Lanier Home Sales Analysis January 2024
Lake Lanier Home Sales Analysis January 2024
 
SVN Live 2.26.24 Weekly Property Broadcast
SVN Live 2.26.24 Weekly Property BroadcastSVN Live 2.26.24 Weekly Property Broadcast
SVN Live 2.26.24 Weekly Property Broadcast
 
Kolte Patil Atmos Hinjewadi Pune E-Brochure.pdf
Kolte Patil Atmos Hinjewadi Pune  E-Brochure.pdfKolte Patil Atmos Hinjewadi Pune  E-Brochure.pdf
Kolte Patil Atmos Hinjewadi Pune E-Brochure.pdf
 
Flats in Thrissur - The Most Trusted Builders in Thrissur
Flats in Thrissur - The Most Trusted Builders in ThrissurFlats in Thrissur - The Most Trusted Builders in Thrissur
Flats in Thrissur - The Most Trusted Builders in Thrissur
 
Brigade ECR Resort Chennai-E-Brochure.pdf
Brigade ECR Resort Chennai-E-Brochure.pdfBrigade ECR Resort Chennai-E-Brochure.pdf
Brigade ECR Resort Chennai-E-Brochure.pdf
 
Mana Jardin Neo Sarjapur Bangalore.pdf.pdf
Mana Jardin Neo Sarjapur Bangalore.pdf.pdfMana Jardin Neo Sarjapur Bangalore.pdf.pdf
Mana Jardin Neo Sarjapur Bangalore.pdf.pdf
 
San Francisco January 2024 Market Report
San Francisco January 2024 Market ReportSan Francisco January 2024 Market Report
San Francisco January 2024 Market Report
 
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings County
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings CountyUnique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings County
Unique Premium 2 & 3 BHK Apartment in Bangalore at Prestige Kings County
 
Luxury Home Marketing | North America FEB 2024
Luxury Home Marketing | North America FEB 2024Luxury Home Marketing | North America FEB 2024
Luxury Home Marketing | North America FEB 2024
 

JLL's Top Tech Cities Presentation

  • 2. JLL TECHNOLOGY OFFICE OUTLOOK tech’s firmly planted roots as well as opportunities for branching out.In examining markets across the country for their attractiveness to the technology industry, we hope to showcase… < 2 0 1 5 >
  • 3. WHAT WE LEARNED < 2 0 1 5 > Proximity to a hub is not necessarily enough: Local markets with an existing tech cluster that are also more affordable than the Bay Area will likely experience accelerated industry growth as firms explore new markets for expansion. 1. Secondary markets are quickly catching up: In 2015, roughly 60% of unicorn companies were located in San Francisco and Silicon Valley, down from almost 76% in 2014. 2. Startup momentum will cost you: Markets with the greatest startup momentum, characterized by access to capital, innovation and top talent (such as New York, San Francisco and Silicon Valley), are also the most expensive. 3.
  • 4. EXAMINING 4 QUESTIONS < 2 0 1 5 > 1. Where are companies leasing space and expanding? 3. Where are venture capitalists placing their bets? 4. What markets will become the next hotspots? 2. Where is the real estate cost highest and where can you find both value and talent to grow your company?
  • 5. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > TECH is the elusive linchpin that separates the growing companies from those that are shrinking
  • 6. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > 73% of technology leases represented occupancy growth
  • 7. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > Secondary and tertiary markets are looking much more attractive to both young and mature companies as industry saturation in the most mature tech hubs has created both competitive and costly leasing environments.
  • 8. TOTAL TECH LEASING (S.F.) (Q414-Q315) < 2 0 1 5 > - - 11,141 45,621 47,000 75,100 98,946 101,539 115,251 117,115 124,734 146,616 169,132 192,921 199,409 249,906 251,437 303,047 322,664 343,224 426,409 451,879 462,960 493,469 546,965 899,413 923,339 938,378 1,063,110 1,654,912 1,807,057 2,175,629 2,400,759 5,386,142 0 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 Miami Salt Lake City Richmond Charlotte Pittsburgh Orlando Houston Indianapolis Minneapolis Suburban Maryland Northern Virginia Detroit Orange County Baltimore Phoenix New Jersey Dallas San Diego Los Angeles Denver Raleigh-Durham Philadelphia Portland San Francisco Peninsula Atlanta Chicago Washington, DC Oakland-East Bay Boston Seattle-Bellevue Austin New York San Francisco Silicon Valley *Data reflects leasing activity from Q4 2014-Q3 2015 for leases 20,000 square feet and larger Source: JLL Research
  • 9. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > Demand toward creative space is intensifying not only among technology companies but throughout the office-using workforce and will begin to push rents at a faster rate.
  • 10. TECH AS % OF LOCAL LEASING < 2 0 1 5 > *Data reflects share of local market leasing activity from Q4 2014-Q3 2015 for leases 20,000 square feet and larger Source: JLL Research 0.0% 0.0% 1.6% 2.9% 3.0% 3.3% 3.8% 4.7% 4.8% 5.8% 8.4% 8.5% 8.8% 9.3% 9.8% 10.6% 11.5% 11.6% 11.7% 12.5% 13.3% 14.6% 15.1% 16.1% 18.4% 23.5% 32.3% 34.0% 38.6% 40.2% 48.2% 66.2% 70.7% 81.3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Miami Salt Lake City Richmond Northern Virginia Houston Charlotte New Jersey Minneapolis Pittsburgh Dallas Orange County Denver Philadelphia Los Angeles Indianapolis Phoenix Detroit Suburban Maryland Orlando Chicago Washington, DC Atlanta Baltimore New York Portland Boston San Diego San Francisco Peninsula Raleigh-Durham Oakland-East Bay Seattle-Bellevue Austin San Francisco Silicon Valley
  • 11. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > Within the primary tech hubs the technology industry’s saturation and fast growth has created highly competitive leasing conditions.
  • 12. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > With an average vacancy rate of 7.6% in the 15 most expensive tech submarkets, tech companies in need of those locations must be willing to pay.
  • 13. MOST EXPENSIVE IN-DEMAND SUBMARKETS < 2 0 1 5 > Market Submarket Average asking rent (Q3 2015) 1. Silicon Valley Downtown Palo Alto $98.68 2. Silicon Valley Downtown Mountain View $87.53 3. San Francisco Mission Bay/China Basin $81.50 4. New York Hudson Square $81.50 5. New York SoHo $79.80 6. New York Gramercy Park $76.58 7. San Francisco Peninsula Menlo Park* $73.44 8. San Francisco South Financial District $68.61 9. San Francisco North Financial District $68.53 10. Boston East Cambridge $67.21 11. San Francisco South of Market $66.07 12. Silicon Valley Cupertino $65.52 13. San Francisco Peninsula Redwood City $63.06 14. New York Greenwich Village $61.49 15. Los Angeles Santa Monica $59.75 TOP 15 *Excludes Sand Hill Road
  • 14. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > Does concentration of brand-name headquarter location present potential risk to the market or does it simply affirm its place as the epicenter of the technology industry?
  • 15. NASDAQ COMPOSITE BY MARKET CAP < 2 0 1 5 > Mega $200b + Large $10-$200b Mid $2-$10b Small $300m-$2b Micro $50-$300m Nano <$50m 69 companies 4 companies 154 companies 247 companies Source: NASDAQ
  • 16. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > 83% of the NASDAQ composite lies with just 73 tech companies
  • 17. # OF MEGA AND LARGE CAP TECH HQs < 2 0 1 5 > # of mega and large cap technology HQs Total market cap Silicon Valley 25 $2,151,240,300,303.46 San Francisco Mid-Peninsula 4 $397,150,931,958.84 Chicago 4 $79,506,967,555.90 Boston 3 $89,782,814,898.36 Northern New Jersey 3 $81,165,126,709.76 San Francisco 3 $68,789,917,234.46 New York 3 $42,055,691,881.64 Stamford 2 $208,420,969,436.20 San Diego 2 $144,263,755,709.21 East Bay 2 $26,495,513,492.10 Seattle 1 $366,762,291,334.80 Dallas 1 $51,657,748,144.84 Orange County 1 $23,412,831,364.80 Kansas City 1 $19,105,214,519.04 Milwaukee 1 $15,646,535,660.62 Raleigh-Durham 1 $10,661,251,367.30 International 16 $641,044,818,435.93 All others 643 $895,466,673,458.15 Grand Total 716 $5,312,629,353,465.43 Source: NASDAQ
  • 18. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > 34 technology companies opened new locations across 19 markets, expanding into a combined total of more than 2.1 m.s.f. in markets like Atlanta, Detroit, Orlando and Phoenix.
  • 19. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > The number of unicorns in the industry has nearly tripled.
  • 20. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > The trend of tech growth in secondary markets is beginning to dispel the traditional mentality that startups need to locate to the Bay Area in order to have access to private capital.
  • 21. VENTURE CAPITAL FUNDING ($ IN MILLIONS) < 2 0 1 5 > $5.00 $20.95 $24.65 $26.00 $34.85 $69.01 $101.57 $108.78 $128.29 $140.85 $147.79 $158.97 $173.87 $201.29 $203.29 $209.35 $279.19 $348.32 $377.34 $379.32 $412.17 $434.60 $459.40 $500.97 $686.03 $872.77 $946.20 $2,084.54 $2,159.88 $2,561.03 $5,313.10 $5,438.80 $12,621.65 Orlando Indianapolis Las Vegas Phoenix Miami Baltimore Dallas Minneapolis Suburban MD Raleigh-Durham Portland Pittsburgh, PA New Jersey Boulder Philadelphia Washington, DC San Diego Denver Suburban VA East Bay Chicago Atlanta Austin Orange County Florida (entire state) Utah Seattle San Francisco Peninsula Boston Los Angeles New York (region) Silicon Valley San Francisco $3.90 $17.80 $19.50 $38.50 $39.10 $51.90 $59.20 $77.50 $92.10 $104.10 $109.80 $117.90 $121.20 $141.70 $176.30 $264.40 $321.00 $340.80 $359.10 $372.50 $429.90 $437.50 $457.10 $592.60 $738.10 $862.10 $1,258.30 $1,411.60 $2,699.30 $5,528.50 $7,460.70 Miami Orlando Las Vegas Raleigh-Durham Indianapolis Boulder New Jersey Baltimore Suburban MD Phoenix Minneapolis Portland Pittsburgh, PA Philadelphia Dallas Denver San Diego Florida (entire state) East Bay Suburban VA Orange County Austin Utah Washington, DC Chicago Atlanta Seattle Los Angeles San Francisco Peninsula Boston New York (region) Silicon Valley San Francisco Source: PriceWaterhouseCoopers Q3 2014 – Q2 2015 Q3 2013 – Q2 2014
  • 22. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > The Locator Matrix is a tool for growing startups and established tech firms to determine the best location for continued company expansion.
  • 23. THE JLL LOCATOR MATRIX < 2 0 1 5 > We looked at several factors to quantify the best prospects for tech firms when considering their next office location: STARTUP OPPORTUNITY: ▼LOW TO HIGH ▲ FACTORS include: • Tech economic opportunity, as measured by employment and wage growth • Depth of talent, measured by share of Millennial workforce and education levels • Innovation, measured by patent activity • Startup agglomeration, or thickness of the startup community, and presence of an existing tech cluster or major tech anchor • Access to venture capital COST FACTORS: ▼LOW TO HIGH ▲ FACTORS include: • Average cost of office real estate • Average cost of housing • Average tech wage to measure cost of talent
  • 24. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > The results of our model divide the markets into four different quadrants, making it clear which markets present the best opportunity for growth based on the cost and startup momentum.
  • 25. THE JLL LOCATOR MATRIX < 2 0 1 5 > Atlanta Austin Baltimore Boston Boulder Charlotte Chicago Dallas Denver Detroit Indianapolis Las Vegas Los Angeles Miami Minneapolis-St.Paul Nashville New Jersey New York City -Brooklyn Northern Virginia Oakland- East Bay Orange County Orlando Philadelphia Phoenix Pittsburgh Portland Raleigh Durham Richmond Virginia Salt Lake City San Diego San Francisco Seattle-Bellevue San Francisco Peninsula Silicon Valley Suburban Maryland Washington, DC Houston Low startup opportunity Low cost High cost High startup opportunity ▼Low startup opportunity, high cost ▼ ▲High startup opportunity, low cost ▲ ▲High startup opportunity, high cost ▲ ▼Low startup opportunity, low cost ▼
  • 26. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > The Market Score is a tool for real estate investors to determine momentum and potential investment opportunity in a particular market with tech in mind. T THE MARKET SCORE L
  • 27. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > Our ranking model revealed that San Francisco provides real estate investors the best mix of favorable attributes for those already invested in a tech market or targeting tech markets for acquisition opportunities.
  • 28. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > As the traditional tech markets like San Francisco and New York become increasingly unaffordable for younger firms, markets like Denver, Boulder, Nashville and Salt Lake City are poised to capture the next wave of tech demand.
  • 29. JLL TECHNOLOGY OFFICE OUTLOOK < 2 0 1 5 > As for the bottom five markets in this year’s ranking, the biggest surprise may be the San Francisco Peninsula’s position toward the bottom.
  • 30. THE JLL MARKET SCORE < 2 0 1 5 > San Francisco 93.4 Washington, DC 89.4 New York City 81.9 Denver 79.8 Chicago 79.2 Boulder 79.0 Nashville 78.8 Seattle-Bellevue 78.3 Salt Lake City 77.3 Northern Virginia 75.7 Oakland-East Bay 75.1 Austin 75.0 Atlanta 74.6 Las Vegas 73.9 Raleigh-Durham 73.4 Boston 73.1 Portland 72.1 San Diego 71.9 Silicon Valley 71.8 Los Angeles 71.8 Orlando 71.3 Dallas 71.2 Minneapolis 70.5 Suburban Maryland 70.3 Orange County 68.9 Richmond 68.4 Pittsburgh 68.2 Houston 67.2 Philadelphia 66.8 Miami 66.5 New Jersey 66.0 Indianapolis 65.4 Phoenix 64.6 Charlotte 63.6 San Francisco Peninsula 60.6 Detroit 60.2 Baltimore 60.0
  • 32. Technology Office Outlook United States 2015 © Copyright 2015 Jones Lang LaSalle CONTACTS: 1. Amber Schiada Vice President, Director of Research Northern California & Rocky Mountain Region +1 415 395 4924 amber.schiada@am.jll.com 2. Julia Georgules Vice President, Director of U.S. Office Research Americas Research +1 415 354 6908 julia.georgules@am.jll.com FOR MORE INFO ON THE: <TECHNOLOGY OFFICE OUTOOK> REACH OUT TO: OR VISIT: us.jll.com/tech-outlook