The best way to sum up the current Greater Boston high-tech market is high cost, high opportunity, and that’s just where the region lands in JLL’s latest 2015 Technology Office Outlook.
Along with markets like San Francisco, Silicon Valley, and New York City, the Greater Boston area presents clear startup opportunity thanks to existing tech clusters, greater access to capital, higher concentration of innovation, and especially in the case of Boston, great talent accessibility. For tech companies with less cost sensitivity, Boston is among the best target markets for growth.
For the second year in a row, Boston ranks among the top 5 in the country in venture capital funding. The city also ranks sixth in total tech leasing. With 53 higher education institutions—most notably Harvard and MIT—in its backyard, the area’s highly-educated, millennial workforce is a main driver in technology companies setting up shop in the region.
East Cambridge in particular is the place most tech tenants want to be. As a result, inventory is sparse and costs are high. In fact, East Cambridge is among the 10 most expensive tech submarkets in the country with an average asking rent of $67.21. And, with a vacancy rate of just 4.7%, Cambridge is also one of the tightest submarkets nationwide.
While it can be challenging to find the right space at the right price in today’s competitive landscape, Bryan Sparkes and Molly Heath, members of our Downtown Boston and Cambridge leasing teams respectively, have some great advice for tech tenants in the market today.
I encourage you to watch the above video and download JLL’s complete 2015 Technology Office Outlook to see how Boston stacks up against 36 other markets across the country. Please don’t hesitate to contact me, Bryan, or Molly for additional information.