The San Diego region posted the sixth-largest percentage gain in software and technology services jobs among 30 major tech cities in North America in the past two years, according to a new report released this week.
CBRE, a commercial real estate firm, ranked cities with significant technology clusters, charting job growth in 2017 and 2018. The annual Tech 30 study also measured how tech job growth affected office rents in each city.
San Diego posted a 19.7 percentage increase in software/tech services jobs over the past two years — trailing Vancouver, San Francisco, Toronto, Seattle and Austin for percentage gains
“Our research centers and universities continue to groom a world class labor supply that constantly innovates and develops new technologies, which leads to business growth,” said Andrew Ewald, first vice president of CBRE’s San Diego office in a statement.
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While the San Diego region saw good software/tech services job growth, that didn’t translate into sky-high increases in office lease rates.
According to the study, local office rents are up 8 percent over the past two years. That ranked 19th among the Tech 30 cities.
Over the same time period, office rents in San Francisco jumped 17.5 percent. Portland and Silicon Valley each saw 15 percent increases. Seattle posted a 12.4 percent hike.
Efforts to reach CBRE for comment were unsuccessful on Friday. But one reason why local software/technology job growth hasn’t led to a corresponding surge in office rents could be that the raw numbers aren’t that large locally.
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The study found that the region’s firms added 5,860 software/tech services jobs, bringing the total number of office-based tech workers to 35,614.
During the same period, San Francisco added almost 20,000 software/tech services jobs for a total of nearly 101,000.
Seattle boosted its office-based tech workforce by 34,500 to roughly 180,500. Austin added 10,500 software/services workers for a total of 57,200.
San Diego’s tech sector is largely concentrated in life sciences and telecommunications, which in many cases require lab space rather than offices. But the software and tech services sector has been growing in the region over the past few years. Homegrown firms Brain Corp., Seismic Software and Kyriba have all significantly expanded their office footprints this year, the report said.
Venture capital investment in San Diego tech companies in the first half of this year exceeded the annual total for all of 2018, according to the report. Robotics, automation, cyber-security and software-as-a-service firms are the fastest growing industry sectors locally, according to the report.
For now, the region lacks large blocks of contiguous office space to lure big tech firms from outside the region, but a handful of potential new developments could remedy the problem over time.
“Large tech companies have been an ongoing source of demand,” said Colin Yasukochi, executive director of research at CBRE’s Tech and Media Insights Center. “The 10 most active tech companies leasing office space since 2013 account for 27 percent of overall tech-industry leasing.”
2019-10-25 23:01:03Z
https://www.sandiegouniontribune.com/business/technology/story/2019-10-25/report-san-diego-firms-adding-software-tech-services-workers-at-fast-clip
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