CBRE’s Scoring Tech Talent Report: companies ready to locate in markets with largest concentrations of high-quality talent

San Francisco Bay Area and Seattle standout for quality, while best-value markets include Toronto, Vancouver, Indianapolis, Pittsburgh and Detroit

Los Angeles, 2017-Jul-19 — /EPR Retail News/ — Strong demand for skills such as software development, hardware engineering and information security, coupled with a tight labor supply, is driving companies to locate in markets with the largest concentrations of high-quality talent, according to CBRE’s fifth annual Scoring Tech Talent Report. And while value is a key driver when it comes to choosing an office location, companies are showing that they are willing to pay a premium to access the highest quality tech talent.

Overall cost variances from market to market are striking: Taking both talent and real estate costs into consideration, the “typical” U.S.-based, 500-person tech company needing 75,000 sq. ft. of office space can expect its total annual cost to range from US$24 million in Vancouver, the least expensive of the 50 markets included in the CBRE report, to US$57 million in the San Francisco Bay Area, the most expensive market.

According to CBRE’s analysis, which can be viewed in detail through the interactive Tech Talent Analyzer, the best-value markets with the highest quality of talent are Toronto and Vancouver (due in part to the strong U.S. dollar) followed by Indianapolis, Pittsburgh and Detroit.

“Since the cost of talent is the largest expense for most firms, the quality of that tech talent is becoming one of their most important considerations. The skills of the available labor pool do not appear to align with available jobs, causing a structural impediment to growth for companies across North America,” said Colin Yasukochi, director of research and analysis for CBRE in the San Francisco Bay Area.

“Only 37 percent of all tech-talent workers are employed in the high-tech industry, meaning tech companies must compete with other industries that employ the remaining 63 percent of tech workers. In addition, the unemployment rate for college-educated workers is around 2.3 percent in the U.S., further stiffening competition. All of this means that, more than ever before, top tech talent comes at a cost today,” he added.

Tech Talent Scorecard

Atlanta and Toronto are the big stories on this year’s Tech Talent Scorecard. Atlanta entered the top five for the first time along with traditional stalwarts like San Francisco Bay Area, Seattle, New York and Washington, D.C. Atlanta bumped Austin out of the top five, which fell back to number 8. Atlanta is one of the few large markets that maintained its fast pace of tech talent growth and has an accelerated forecast for future tech job creation, which elevated its position in the rankings.

Meanwhile, Toronto jumped a full six spots to number 6, from last year’s number 12. The elevated ranking was due to its talent employment base growing by the highest number of workers.

The rankings for the Tech Talent Scorecard are determined based on 13 unique metrics including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth, and market outlook for both office and apartment rent cost growth. The top 10 cities on the Tech Talent Scorecard were all large markets, each with a tech labor pool of more than 50,000:

Rounding out the top 15 were Baltimore, Denver, Newark, N.J., Orange County, Calif. and Chicago. Denver and Newark were new this year in the top 15, bumping Phoenix and Minneapolis to number 17 and 18, respectively. Of note, Vancouver also made a strong showing this year at number 16.

Top Momentum Markets

Tech job growth gained momentum in 28 of the 50 markets. This means job creation grew faster in the past two years (2015-2016) compared with the prior two-year period (2013-2014). The number of markets experiencing faster growth almost tripled from 10 markets in last year’s Scoring Tech Talent report. The top 10 momentum markets and their associated tech talent growth rates were:

“This year’s report shows the top 10 markets for momentum are all moderately priced and grew at least 10 percent faster than during the prior two-year period. Tech employment growth has a multiplier effect that positively impacts economic growth, which in turn can have an immense impact on commercial real estate activity,” said Mr. Yasukochi.

Commercial Real Estate Market Impact

The high-tech industry’s share of major leasing activity nationwide increased to 19 percent in 2017 from 11 percent in 2011—the largest single share of any industry. Accordingly, office rents are up in almost every market in the top 50 and vacancy has declined, with the biggest impact in the most tech-concentrated sub-markets.

Significant demand for office space in top tech-job-producing markets raised rents to their highest levels and pushed down vacancy rates to their lowest levels. Rent growth is most prominent in the large tech markets, with office rents in the San Francisco Bay Area two-thirds higher than five years ago. But the decrease in vacancy rates is present across both large and small tech markets. Vacancy rates in the San Francisco Bay Area and New York are the lowest of the top 50 tech talent markets, and some small markets like Madison and Nashville are not far behind.

The 10 markets with the most significant five-year rental rate growth include:

Brain Gain or Drain?

College graduates do not always remain in the labor market where they earn their degrees; they often migrate to locations that offer the best job opportunities and pay. Analyzing tech-related graduation data and tech-related employment growth, CBRE calculated the difference between where tech talent workers are employed and where they were educated. Tech degrees cover the most recent five-year period available (2011-2015) and tech jobs added cover the time period when most graduates would be counted in employment figures (2012-2016).

Not surprisingly, the San Francisco Bay Area stands out as a strong tech-job creator and tech talent attractor, with nearly 80,500 more tech jobs than graduates, followed by eight markets that added 10,000+ more jobs than graduates. On the other end of the spectrum, Los Angeles, Washington, D.C., and Boston produce a significant number of tech graduates, but post a deep deficit when it comes to employing them locally.

To view the full report, please click here. To view individual markets statistics and rankings, including rankings on the Scorecard, click to access the Tech Talent Analyzer.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

MEDIA CONTACT:

Robert McGrath
212.984.8267
robert.mcgrath@cbre.com

SOURCE: CBRE Group, Inc.

CBRE’s Shelter Program “BuildMonth” begins on September 1, 2016

Los Angeles, 2016-Aug-31 — /EPR Retail News/ — CBRE Group, Inc. today (August 30, 2016) announced its seventh-annual “BuildMonth” will begin on September 1, 2016. BuildMonth, part of the company’s Shelter Program, provides CBRE employees with the opportunity to volunteer for projects in their communities that improve housing options in low-income neighborhoods. The initiative is part of CBRE Cares, the company’s corporate philanthropy program and is the Shelter Program’s signature event each year.

In 2016, more than 800 CBRE employees in 20 offices across the United States will volunteer to renovate and refurbish housing in communities across California, Colorado, Florida, Georgia, Illinois, Indiana, Michigan, Minnesota, Missouri, New Mexico, North Carolina, Pennsylvania, Oregon, Washington, Utah, Nevada, Texas and Ohio. These employees dedicate their time to this initiative, and, in return, the company provides them with paid time off for their participation in these projects.

“Basic necessities such as a roof over your head and a safe environment for your children are things most of us take for granted,” said Jack Durburg, CBRE’s Chief Executive Officer, Americas. “BuildMonth provides CBRE employees across the country with a valuable opportunity to give back to the members of their community. Our employees not only build safer and healthier homes, but they also build a brighter future for the families living in them.”

CBRE Shelter Program non-profit partners Rebuilding Together and HomeAid participate in BuildMonth alongside CBRE employees. Habitat for Humanity also contributes to rebuilding efforts in select markets. These organizations lead the effort to provide critical repairs to low-income homeowners, while stressing the importance of affordable home ownership and providing the homeless with a respectable place to live.

In addition to BuildMonth, CBRE continues incorporating large-scale Shelter Program projects into its philanthropy program. This year CBRE employees pitched in at two neighborhood revitalization projects: Kickoff to Rebuild Super Bowl 50 in San Francisco, California, and Building a Healthy Neighborhood in St. Louis, Missouri. In November 2016, another big rebuilding project involving up to 200 employees is planned at the CBRE Women’s Networking Forum in Chicago, Illinois.

Since the start of the Shelter Program in 2010, more than 6,200 CBRE employees have participated in over 45,000 hours of service, completing 152 rebuilding projects throughout the world. BuildMonth accounts for more than half of the company’s Shelter Program participation each year.

To find out more about the CBRE Shelter Program, visit www.cbre.com/shelterprogram.

To learn more about CBRE Cares, please visit www.cbre.com/cbrecares.

CBRE Cares is governed and executed by the CBRE Foundation, an independent, non-profit, public-benefit corporation that funds CBRE’s philanthropic initiatives.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue).  The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide.  CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.  Please visit our website at www.cbre.com.

About HomeAid America
HomeAid is a leading national non-profit provider of housing for homeless families and individuals with 15 chapters in 10 states across the country. Through the generosity of builders, their trades and their suppliers, HomeAid has completed 360 housing projects nationwide at a value of more than $200 million, of which nearly 50 percent has been donated by the building industry. HomeAid currently has 25 additional projects in development across the country as it enters its 25th Anniversary year in 2014. HomeAid’s facilities offer 2.7 million bed-nights annually and have helped over 190,000 previously homeless people over the years. For more information about HomeAid, call 1-888-3 HOMEAID or visit www.homeaid.org.

About Rebuilding Together
Rebuilding Together is a Safe and Healthy Housing organization that believes Community Starts at Home. Our focus provides critical repairs, accessibility modifications and energy efficient upgrades to low-income homes and community centers at no cost to service recipients. Our impact extends beyond the individuals served to revitalize and stabilize vulnerable neighborhoods and communities across the country. Our 187 local affiliates complete more than 10,000 rebuild projects a year thanks to the efforts of 100,000 volunteers from corporate partners, skilled trades professionals and everyday good citizens. Join us – visit www.RebuildingTogether.org.

About Habitat for Humanity International
Habitat for Humanity International’s vision is a world where everyone has a decent place to live. Anchored by the conviction that housing provides a critical foundation for breaking the cycle of poverty, Habitat has helped more than 5 million people construct, rehabilitate or preserve homes since 1976. Habitat also advocates to improve access to decent and affordable shelter and supports a variety of funding models that enable families with limited resources to make needed improvements on their homes as their time and resources allow. As a nonprofit Christian housing organization, Habitat works in more than 70 countries and welcomes people of all races, religions and nationalities to partner in its mission. To learn more, donate or volunteer visit www.habitat.org.

MEDIA CONTACT:
Robert McGrath
Senior Director, Global Media Relations
+1 212 9848267

Source: CBRE