Today marks the first day of the inaugural eMerge Americas Techweek conference in Miami, a five-day mega-conference that will showcase Miami’s burgeoning tech scene and promote the South Florida region as an up-and-coming technology hub. Approximately 5,000 technology entrepreneurs, programmers, developers, investors and technology leaders from around the globe are expected to attend the five-day event, which is the brainchild of Miami technology entrepreneur Manny Medina, founder of Terremark.
There’s no question that a stronger tech community would be a boon to South Florida’s economy, and the real estate sector. According to a September 2013 report published by CBRE Global Research and Consulting, there’s a strong correlation between the high-tech industry, jobs and office market expansion. The CBRE report, “U.S. Tech-Twenty: Measuring Office Market Impact,” looked at high-tech employment and office market conditions in 20 tech-oriented office markets across the U.S. (such as San Francisco, Austin, New York City and Silicon Valley) and found that high-tech companies – firms involved in software development, mobile and social media technologies, and information technology products and services – added jobs five times faster than the national average between 2009 and mid-2013, producing 366,000 new high-tech services jobs at a 17.4% growth rate, versus a 3.4% growth rate for U.S. total nonfarm jobs.
Moreover, the high-tech services sector was responsible for one out of every four new office-using jobs, significantly impacting office market fundamentals across multiple markets. Rising high-tech employment actually helped fuel double-digit rent growth in 10 U.S. tech-dominated submarkets during that time frame.
Those are compelling statistics that illustrate how impactful a strong technology cluster in South Florida could be.
Many of us believe South Florida has the right combination of attributes to attract top talent and capital to the region – a business-friendly tax climate, a sophisticated and diverse international community, world class cultural and retail attractions, and of course, a lifestyle that few other cities can offer. Indeed, we believe that TechWeek could be the best thing to happen to Miami since Art Basel.
By: Ken Krasnow
Managing Director | CBRE South Florida
Ken Krasnow is the Managing Director for CBRE’s South Florida offices. In 2013, his region executed over 1000 transactions – 175 sales, and 825 leases – with an aggregate value exceeding $2.8 billion. In addition, CBRE South Florida completed over 1,400 valuation and advisory assignments and $600 million in loan originations.