When it comes to the tech industry, San Diego is in an enviable position compared to other major tech centers.
Our rents are cheaper.
That makes the region a go-to place for new tech companies or could help fuel the expansion of existing tech firms, according to CBRE’s annual Tech-Thirty list, which analyzes the 30 leading technology markets in the U.S. and Canada.
“We continue to see consistent, steady growth in tech related companies in San Diego, primarily in the UTC, Sorrento Mesa, and Downtown submarkets,” said Andrew Ewald, vice president and tech and media expert for CBRE in San Diego.
“This growth encompasses organic growth from local San Diego companies as well as the relocation and expansion of companies from other U.S. markets. A strong millennial labor pool, coupled with moderate office rent growth compared to other major tech cities, provides a strong foundation for continue success of our market.”
Sorrento Mesa was San Diego’s top tech submarket with an average asking rent of $36.12 per annum in this year’s second quarter. However, it had a vacancy rate of 19.1 percent—which is a 13 percent increase from last year.
Sorrento Mesa ranked 20th in the top tech submarkets in terms of office rent growth over the past two years. But look out for Downtown. It’s catching up to submarkets like Sorrento Mesa, because developers are offering amenities that tech firms like, such as cool office space.
Tech is growing in San Diego, rising 8 percent from 2013 to 2015, with average asking rental rates — at $32.71 — being more affordable than other California markets such as Los Angeles ($35.02) San Francisco ($72.71) and Silicon Valley ($55.08).
Cybersecurity, big data analytics and robotics are up-and-comers. To download the report, click this link.