The office market is always changing as areas float in and out of popularity, so it’s unsurprising that new stats show a change in the top five cities in the US by their percentage of deals per city.
In recent stats gathered by Search Office Space and the Global Workspace Association, comparing the percentage of deals per city in 2010 against 2013, Houston, Miami and Dallas were amongst the casualties.
In 2010, these top five were the obvious contenders in the market, with New York and Los Angeles in top spot, with the other cities showing much lower figures. In 2013 though, New York and Los Angeles continued to grow significantly, whilst there was surprising growth for cities such as Orange County, Washington DC and San Diego. Cincinnati and Austin also appeared on the table, having not had any deals in the 2010 stats, and recently Officing Today explored why areas, such as Austin, might have growth – looking at the social and entrepreneurial opportunities in the area.
Why have some areas grown so much?
Washington DC has seen a growth in social media and tech companies who established themselves in the area several years ago and are now reaping the benefits as social expands. In this IT Business Net article, they mention Social Media Maxima Inc. who were set up in 2009 and thrived through small businesses taking on their services. As social media has evolved, the company too adapted and they now boast an ‘impressive revenue and client base’. Another social media company are LivingSocial who, as this article on the top companies in the Washington DC area shows, have had a 12,333% growth rate in the last three years and are bringing in $536 million in revenue.
San Diego has caught the eye of businesses because of its ‘mild climate, seaside location and diverse neighbourhood’ according to Business Insider. With all kind of crazy and fun business concepts which are growing quickly, it has become a hot spot for start-ups and small businesses. But it is also home to many larger companies, such as Sony Electronics who have 146,000 employees worldwide.
Think Orange claim that Orange County’s biggest industries are manufacturing, agriculture and industrial sectors. The website boasts of the county’s ‘excellent transportation network of major U.S, untouched and remarkable rural countryside, sizeable collection of available industrial and business parks and low real estate tax’. The website is part of a push by the local government to lure businesses, offering resources for funding opportunities and incentives – making the county quite attractive!
There are many reasons why there are some new cities on the business map in the US now – with the low cost of these locations and a growing population of similar minded businesses in the same area; it’s turning into the ideal location.
With social media connecting people so easily now – your reach can be further, wherever you’re based, and you don’t need to be in NY or LA to keep up with contacts, clients and customers regularly. There are also office spaces to accommodate this, with hot desking and shared office options so companies don’t need just traditional large office space in the centre of the city now.
Why not utilise your money and resources and get a space in one of the outer cities, because I’m predicting that this divide will continue to grow, and when it does, you’ll be in just the right place.