Salt Lake City—Salt Lake City, Utah, has emerged in 24th place within the top 25 U.S. tech cities, with San Jose (Silicon Valley) and San Francisco capturing the first and second spots respectively, according to Cushman & Wakefield’s inaugural “Tech Cities 1.0” national report launched today.
“Utah has been known as ‘Silicon Slopes’ due to the numerous innovations and technology companies that have been born here,” said Trigger Reital, Market Leader of the Salt Lake City office of Cushman & Wakefield Commerce. “Salt Lake City is home to a number of global tech companies that have moved operations to Utah to take advantage of the state’s highly skilled workforce and business-friendly environment.”
In 2016, approximately 3,000,000 square feet of office space was delivered along the 10-mile stretch on the southern border of Salt Lake County called the “Tech Highway.” There are numerous companies, such as Adobe and eBay that have set up operations in this area. Aside from the talent pool, outdoor lifestyle, and accommodating government, the 90-minute flight from the West Coast is appealing to many technology firms.
The top 25 tech cities were determined by analyzing the concentration of factors such as talent, capital, and growth opportunity – the key ingredients that comprise a tech stew. The heartiest of these tech epicenters are: 1. San Jose, CA (Silicon Valley); 2. San Francisco, CA; 3. Washington, DC; 4. Boston/Cambridge, MA; and 5. Raleigh/Durham/Chapel Hill, NC.
Cushman & Wakefield created the “Tech Cities 1.0” report to provide greater insight for its clients and industry stakeholders into existing and emerging tech centers that are driving much of today’s U.S. economy.
Ken McCarthy, Cushman & Wakefield’s New York-based Principal Economist and Applied Research Lead for the U.S., states that “tech is in everything” and that people would be left behind if they did not adopt technology and change with that technology.
“Basically every company today is a tech company in one way or another. We’re all using it, we’re using various aspects of tech companies to do various things,” Mr. McCarthy elaborated. “Whether it’s Salesforce as customer relationship management, or Workday for HR, and various other database programs, the old way of doing business just doesn’t work anymore.”
Report co-author and Regional Director, Northwest U.S. Research at Cushman & Wakefield, in San Francisco, Robert Sammons, said that while it was not surprising to see San Jose (Silicon Valley) and San Francisco continue to dominate, that mass-transit issues and escalating housing costs in those areas have fanned a tech spillover into secondary markets such as Austin (no. 7), Denver (no. 8), San Diego (no. 9), and Salt Lake City (no. 24).