The country's largest markets (like New York, Chicago or San Francisco) offer significant benefits in terms of the size of the workforce that they offer and the abundance of services they provide. However, as we near closer to 2014, we see that a new class of cities are emerging to compete with the larger markets.
Corporate real estate in tertiary markets can offer much lower occupancy costs, but can also bring significant workforce value. Check out these five cities that stand out by offering a blend of big-city benefits with small-town occupancy costs:
Baltimore, MD
While the average rent rate in Washington, DC is $51.43, space in Baltimore averages just $22.15. The federal government, including the National Security Agency in nearby Anne Arundel County, largely anchors the market. Baltimore has a highly educated workforce, thanks in large part to educational institutions like prestigious Johns Hopkins University.
Minneapolis, MN
Home to a higher concentration of Fortune 500 companies per capita than any other city in the U.S. other than New York, Minneapolis is a sleeper market that offers a unique blend of opportunities. Its highly educated workforce has diverse skills as evidenced by the city's strong position in the food and agribusiness industry, retail, high tech, advertising and financial service industries. Corporate real estate space is relatively inexpensive at $24.45 per square foot for office rent. Also, the city enjoys rail and interstate highway connections as well as a major airport that serves as a domestic hub for Delta Airlines. Thanks to extensive skyway systems in downtown Minneapolis and St. Paul, you don't have to be freezing come wintertime, either.
Pittsburgh, PA
Far removed from its history as a steel-working town, Pittsburgh offers an inexpensive average rent of $22.24. Home to Carnegie-Mellon University and the University of Pittsburgh, the community offers a well-educated workforce with strength in many high tech fields. The city has one of Google's few domestic offices and has recently seen that space grow. It also features a relatively low cost of living and business.
Raleigh-Durham, NC
With all of the attention being paid to Charlotte, Raleigh-Durham sometimes fails to get the acclaim that it deserves. Extremely low rents of $19.61 make it an affordable place for corporate real estate, while reasonable costs of living help to justify lower salaries. While your business might not have to pay as much as in other communities, the workforce that it can access is second-to-none. Home to three major universities, 41.5% of Raleigh-Durham's workforce holds a B.A. or better, placing it firmly in the top ten most educated cities in America.
Salt Lake City, UT
With one of the most affordable average office rents in the country - just $18.05 per square foot - Salt Lake City might seem like it's too inexpensive to be true. However, including Salt Lake City in your corporate real estate portfolio gives you access to one of America's most productive and dedicated workforces.
Salt Lake City also benefits from a low cost of living, low taxes and a low cost of doing business. While the University of Utah might not have the brand recognition of the schools in other communities, its graduates are hard working, skilled and entrepreneurial. Salt Lake City also has the lifestyle benefit of access to world-class skiing.
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Article Source: High-technology Office Outlook 2013
