November 20, 2015
According to JLL’s 2015 United States Technology Office Outlook, San Diego is following in the footsteps of Silicon Valley. The city is the 8th highest in tech as a percentage of local leasing. On JLL’s cost to start up opportunity matrix, SD is in the best position- low cost and high start up opportunity.
Northern California’s high costs and in-demand space is pushing tenants to look elsewhere, realizing that location is no longer the only factor worth consideration. Strategies are turning towards having a base in the Bay Area, while allowing for secondary offices with more space elsewhere. San Diego’s lower costs make it a good option, and Fitbit and Lumedyne seem to agree as they are currently looking to lease in the city.
Another factor besides office cost is the labor pool. Venture capitalists are looking around the country for good ideas, not just up north. Since Qualcomm and Sony Electronics are headquartered in San Diego, the upcoming Qualcomm layoffs will create a highly skilled labor market seeking tech jobs, or starting their own companies.