The issue of the rising costs on rents is not new to the U.S. renters. Now with the rising opportunity for tech startups, renters are now open to new options for growth in other cities to even out the bulging cost in rents.
"Over the past year, 73 percent of the sector's office leases represented occupancy growth. With Northern California holding nine of the top 15 most expensive in-demand technology submarkets--led by Downtown Palo Alto at $98.68 per square foot--tech firms are looking to other zip codes to fuel their future. Expansion for the technology industry in 2015 is no longer just about the convenience of cheaper rents or accessing new talent pools. It's a strategic necessity," according World property journal.
In the reports provided, Silicon Valley now ranks the highest in the leases which gives renters an idea to choose building their companies in much more cheaper locations. Some of the initial cities that are sought out as a solution to not meddle with the increase of cost in Silicon Valley are Atlanta, Detroit, Phoenix, and Orlando.
Apart from these, one of the other aims seen in this solution for company startups is not to level up with that of Silicon Valley hence create a version of it in the cheaper areas.
"Other markets are not competing against Silicon Valley. They're competing to be more like Silicon Valley," said Director of U.S. Office Research Julia Georgules in the article. "Technology has become so pervasive in business that it's now becoming a part of every industry and every market. This is generating a new momentum and energy in smaller markets and making them attractive to the type of talent that the technology industry is recruiting. It's not necessary to be located in San Francisco or Silicon Valley anymore as a result, although you'll still find great opportunity in those markets."
Meanwhile, this is a great opportunity for other cities to grow considering the immense interest in the proliferation in the technology area.
