San Francisco Bay Area Submarkets Lead Nation in Terms of Tech Appeal, JLL Study Shows
By Alex Girda, Associate Editor
Most of the coverage that the San Francisco Bay Area receives real estate-wise is tightly knit to the area’s office real estate market. According to real estate company Jones Lang LaSalle, the San Francisco Bay Area’s three markets: San Francisco, Silicon Valley and San Francisco Peninsula have ranked first, second and third as the top three tech markets of the country as per JLL’s U.S. High-Technology Office Outlook for 2013.
The study, using factors such as job growth in the sector, venture capital funding, education and innovation, has determined the best 26 markets in the eyes of the tech sector. Based on those variables, each market achieved a total score, and was then ranked in relation to the other markets. San Francisco achieved a score of 81.2, while Silicon Valley and SF Peninsula had 78.7 and 77.0 respectively. To put things into perspective, the fourth best tech market according to the Jones Lang LaSalle study, is Puget Sound, with a score of 66.8.
Out of the 26 markets, the lowest score was attributed to Las Vegas, with a score of 15.7, with the U.S. overall scoring 33.3. Clearly, the tech clusters in San Francisco, along with the Silicon Valley culture created by Facebook, Google and Apple and a number of other companies, but also by schools such as UC Berkeley and Stanford, have elevated the entire area. The office market is being bolstered by the effect and the love the area is getting from tech companies, and with that, an improved multifamily market