Austin, San Francisco and Tel Aviv have been ranked as top cities for tech companies, a report from international real estate advisor Savills has revealed.
The research aimed to discover what factors make certain cities good for the tech sector. Access to human capital was revealed as a key driver in the location of tech firms, as well as factors ranging from access to venture capital to the quality of coffee in the local café.
New York, Singapore and London came out as leaders for business environment.
“Austin’s South by Southwest festival brings together film, music and tech, while Dublin’s Web Summit is Europe’s largest tech conference – these vibrant mixed use communities are at the centre of the new tech industry spirit,” said Savills associate director of world research Paul Tostevin.
When taking into account consideration IT skills, tech regulation and infrastructure, Hong Kong, Stockholm and Singapore ranked highest. Singapore was revealed to have the fastest broadband speed at 100Mpbs.
Read more about tech cities
- A tech hub has been launched in the north of the UK to support startups which have fallen into the shadow of London’s Tech City
- Juniper Research names its top ranking smart cities for 2015 and points to a number of areas of concern that need to be addressed
- More than a quarter (28%) of tech jobs are advertised for roles outside of London, according to a report from recruitment firm Experis
In terms of evaluating property, Savills said that when combining the office and residential costs, Mumbai is the most affordable city at £12 per sq ft for office rents. Singapore, London and Hong Kong all came out at above £55 per sq ft for an established office location and ranged between £20 and £58 per sq ft for a scale-up.
Savills UK head of corporate real estate Jon Hutt said decisions on location are based on far more than the cost of property.
“In today’s world it is fundamental companies look closely at how they retain their existing talent pool, attract new talent and keep themselves ahead, in what is an increasingly competitive employment market," he said.
“The nature of their space, the areas in which they locate, the quality of life they can offer their teams and the access they have to talent as they grow, significantly outweigh saving a few dollars on rent. This applies to all companies, but for the tech community in particular it is crucial.”
Savills' research also revealed the average commute for tech city employees is 31 minutes.