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Phoenix: An easy attraction for Millennials

February 08, 2018

Phoenix has become a tech hub in its own right for a few compelling reasons. It has a growing pool of talent and still has a relatively low cost of doing business and living. It’s also home to one of the nation’s largest and most innovative universities, which is highly attractive to eager Millennials.

One of the fastest-growing tech markets in the country, Phoenix has seen a whopping 48 percent increase in people employed in tech occupations over the last five years, adding nearly 4,000 new tech employees in the last year alone.

As unemployment continues to decline, and the battle for talent continues to heat up, Grand Canyon State employers are mindful of the way their office space affects culture, recruiting and retention. Tech employers—and their employees—have clustered in the Tempe and South Scottsdale submarkets, both of which are rapidly developing their live-work-play environments. Recently, Downtown Phoenix has emerged as the next hot tech submarket, boasting hundreds of recently developed multifamily units, creative adaptive re-use projects, ample amenities and amazing access to public transportation.

 

Numbers to watch

A number of nearby universities are producing the next great wave of tech talent for local companies to tap into.

  • 39.3% - The population over 25 with an Associates degree or higher
  • 30.8% - The population over 25 with a Bachelors degree or higher
  • 23.8% - The share of Bachelors degrees that are STEM degrees
  • 7.3% - The population over 25 with a STEM degree

 

Top lease transactions (2017)

1. 201 E Washington St.

  • Submarket: Downtown
  • Size: 110,000 s.f.
  • Type: Expansion

2. 1500 N Priest Dr.

  • Submarket: Tempe
  • Size: 71,618 s.f.
  • Type: New lease

3. 2 N Central Ave.

  • Submarket: Downtown
  • Size: 37,790 s.f.
  • Type: New to market

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