3rd Quarter 2016 Economic Reporter Newsletter
Post Date:07/12/2016 2:24 PM
The buzzwords in the City of Mesa's Office for Economic Development April-June 2016 Newsletter are speculative development - land development or construction with no formal commitment from the end users of the finished product. The speculation can involve either/both the city and development partners and/or builders who anticipate [ or maybe gamble and take a risk ]that a demand exists or will form for the product when it is put on the market.
Bill Jabjiniak and his staff are cheerleaders for the investors and developers. Its their job, so we get a newsletter.
Please click here to enjoy the 3rd Quarter 2016 Economic Reporter Newsletter – a quarterly newsletter produced by the City of Mesa Office of Economic Development.
A new wave of Speculative Development hits Mesa after the top-tier industrial regions, such as Los Angeles, Chicago, New Jersey and Dallas, were the first to see the resurgence in speculative development, starting in mid-2013. Now speculative development has spread to other markets.
Highly Skilled Workers are Flocking to Affordable Markets with a Growing
Tech Presence, According to CBRE's Annual "Scoring Tech Talent" Report
Robust influx of millennials in the workforce is a significant factor in
this year’s ranking of the top 50 “Tech Talent” markets in the U.S. and
Canada
Los Angeles, JUNE 30, 2016 – San
Francisco remains the nation’s leading tech market, but the competition for
talent is getting tougher as more highly skilled tech workers—especially
millennials—are flocking to cities where the cost of living is lower and tech
jobs are plentiful, according to CBRE Group, Inc.’s annual Research report, “Scoring Tech
Talent,” which ranks 50 U.S. and Canadian markets according to their ability to
attract and grow tech talent.
In their quest for highly skilled talent and for lower
cost of doing business, both new and expanding companies are establishing
footprints in these more affordable markets—including Nashville, Charlotte,
Tampa, Seattle and Phoenix—leading to a rise in demand for office space and a
decrease in office vacancy.
Tech Talent Scorecard
Tech Talent Scorecard
Established tech markets, namely the San Francisco Bay
Area, Washington, D.C., and Seattle, once again dominated the top spots on the
2016 “Tech Talent Scorecard,” with New York and Austin rounding out the top
five—a boost for Austin, which ranked #8 last year. 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.
Rounding out the top 15 were Phoenix, Toronto, Chicago, Orange County and
Minneapolis.
Top Momentum Markets
Meanwhile, small markets took dominant positions on the
list of top “momentum markets,” which ranks cities based on tech talent growth
rates between 2010 and 2015. Charlotte and Nashville, which saw tech talent
growth rate increases of 75 percent and 68 percent, respectively, topped this
year’s list
The top 10-ranked momentum markets and their associated tech talent growth rates were:
The top 10-ranked momentum markets and their associated tech talent growth rates were:
| 1. | Charlotte, NC | 74.7% |
|---|---|---|
| 2. | Nashville, TN | 67.9% |
| 3. | SF Bay Area, CA | 61.5% |
| 4. | Baltimore, MD | 61.4% |
| 5. | Oklahoma City, OK | 59.0% |
| 6. | Phoenix, AZ | 58.1% |
| 7. | Austin, TX | 51.8% |
| 8. | Tampa, FL | 50.9% |
| 9. | Seattle, WA | 50.2% |
| 10. | Vancouver, BC | 50.1% |
For a comparison of the details in the following section here's a data table from the City of Mesa with low percentages for educational attainment
“Tech talent markets share several distinct
characteristics, including high concentrations of college-educated workers,
major universities producing tech graduates and large millennial populations,”
said Colin
Yasukochi, who authored the report on behalf of CBRE Research. “The robust
entrance of millennials into the labor pool contributed greatly to the growth in
tech talent across all 50 downtown markets in our ranking this year.”
Influential Factors Shaping Tech Markets Today
> Educational Attainment/Tech Degrees: Nearly 70 percent of the top 50 tech
talent markets have an educational attainment rate above the U.S. average (30
percent), with Seattle and Washington, D.C. boasting more than 50 percent of
residents age 25 years and older with Bachelor’s degrees or higher. More
relevant to this study is the number of graduates who have earned technology
degrees.
Boston (-17,200) and Phoenix (-12,400) had net job creation deficits.
> Cost of Living: According to Moody’s Analytics, 36 of the top 50 tech talent
markets have a cost of living above the U.S. national average.
> Presence of millennials: The presence of higher educational institutions helps
markets attract high concentrations of millennials. Madison, Pittsburgh and
Boston took the top spots, each boasting millennials as 25 percent or more of
the total population.
Impact on Office Markets
“Although a relatively small portion of the economy,
tech-talent employers spurred economic activity and added more than 1 million
tech jobs during the past five years,” said Mr. Yasukochi. “As a result, tech
talent growth has recently been the top driver of office leasing activity in the
U.S. and high-tech companies are now one of the main drivers of commercial real
estate activity.”
- In 2016 Phoenix-Mesa-Scottsdale has an Overall Rank of 205
- lower than the three previous years 2015 (124), 2014 (115), and 2013 (121)
Leading Locations for 2016 Commentary:
Diversity of Leading Cities Reflects Commercial Real Estate Demand
Jason Tolliver, Vice President and Head of Industrial Research, Americas, Cushman & Wakefield Q2 2016
Full Chart Expanded go here
Blogger's Note: Area Development’s research desk compiled the statistics for this report. Locations were ranked according to the methodology explained herein.
This article was written by Steve Stackhouse-Kaelble, Staff Editor
This article was written by Steve Stackhouse-Kaelble, Staff Editor
Significant Assignments from CBRE 2 in Mesa
Date: 6/30/2016
- Gilbert Tech Center I & II, Gilbert, AZ ±190,553 SF manufacturing/distribution
- Mulberry Business Park, Mesa, AZ ±159,206 SF manufacturing/distribution
- Westech Distribution Center, Chandler, AZ ±145,532 SF manufacturing/distribution
- 4707 East Baseline Road, Phoenix, AZ ±137,000 SF manufacturing/distribution
- 1868-1872 East Broadway Road, Tempe, AZ ±126,690 SF manufacturing/distribution
- Southbank Business Center, Phoenix, AZ ±108,285 SF flex/manufacturing
- 464 East Chilton Drive, Chandler, AZ ±104,352 SF manufacturing/distribution
- Warner Commerce Park II, Chandler, AZ ±85,551 SF manufacturing/distribution
- EastPoint Business Center, Chandler, AZ ±77,225 SF manufacturing/distribution
- Phoenix-Mesa Gateway Area, Mesa, AZ ±193 AC acreage
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