Sep 6, 2016, 10:19 AM
2016 Tech Outlook - Boston
Boston’s unique blend of talent, financial resources and entrepreneurial spirit have made it a top destination for both new and established firms.
Though the sector’s diversity keeps competition for customers low, competition for the best office space is reaching new heights.
Key stats as of Q2 2016
|Average asking rent (per square foot)||$33.74|
|12-month rent growth||+4.6%|
|Employee cost (average wage 2015)||$135,454|
|% of population with bachelor's degree or higher||45.2%|
|Share of Millennials||21.9%|
|Change in tech employment YoY||+4.2%|
|VC funding (Q3 2015 - Q2 2016)||$2,345.8 M|
|Average monthly apartment rent||$2,124|
|Urban core premium||+65.4%|
Where there’s opportunity
- Talent: Boston has a highly educated workforce generally, and is second only to Silicon Valley in its tech-specific talent pool.
- Momentum: A unique blend of talent, financial resources and entrepreneurial spirit make Boston attractive not only to new startups, but also global tech leaders. GE, for example, recently relocated its headquarters to the Seaport. We expect Boston to continue to grow as a top technology destination.
Where there are challenges
- Competition for cool space: Major tech hubs like Cambridge and the Seaport are getting crowded and more expensive, forcing tenants to get creative in their search for—and use of—office space. Some companies are starting to push tech’s traditional Beantown boundaries, like SAP and Bullhorn, which both just moved to the Financial District.
Want more? Download the complete 2016 Boston Technology Office Outlook.
See how other markets stack up in the 2016 Tech Outlook:
View Boston's growth since last year's report or see the top 10 trends impacting the industry nationwide.
Research: Lisa Strope, Megan Shields | Editor: Laurel Miltner