Recent reports show that tech is thriving in Arizona, creating a market for Tucson tech commercial property.
It’s an exciting time to be in tech in Arizona as the industry continues to grow in this Southwestern state.
Recent reports out of Tucson and Phoenix show that technology is playing a big part of the state’s economy. And as tech grows, so do the number businesses that support them—and their need for commercial real estate.
Tech Launch Arizona
The commercialization arm of the University of Arizona in Tucson recently reported a record-setting 284 disclosed inventions for fiscal year 2019. Tech Launch Arizona also had a record 56 issued patents for the 12 months that ended June 2019.
“By protecting these inventions and then licensing to existing companies and startups,” said TLA Assistant Vice President Doug Hockstad, “we create the pathways that ultimately put these inventions into the hands of the public, where they can create jobs and improve lives.”
Tech Launch Arizona helps UA faculty, staff and students secure patents, license those patents and spin off startups. Last fiscal year there were 11 startups. They launched products in database storage, academic tutorials, dust control, augmented reality, optics, cellular research and ceramics.
In medicine, this year’s set of spinoffs tackle fibrotic disorders, cancer, pancreatic diseases and therapeutics.
The university’s main campus is in Pima County, which is doing its part to attract more tech businesses to the Tucson area. “The Pima County Economic Development Plan 2019- 2021” focuses on developing the workforce, expanding logistics infrastructure and expanding job opportunities.
Working with business and government partners will make for a stronger economic development effort, according to the report. These entities include tech leaders in aerospace, defense, mining, emerging industries, startups and incubators.
“Including our partners in this plan provides a one-stop opportunity for site selectors, as well as expanding or relocating employers to better understand the assets throughout the region and places Southern Arizona in a stronger position to compete on a national scale,” the report says.
Arizona Technology Council
The Tucson metropolitan area plays an important role in Arizona’s tech industry. And the statewide growth of that industry looks good.
Spinoffs and technology companies listed in Arizona grew 16% in 2018 compared to 2017, according to an industry impact report commissioned by the Arizona Technology Council.
There were 2,561 startups in Arizona that were listed on AngelList. The average valuation was $3.7 million.
Arizona’s tech community has seen growth in wages, jobs and investment. Venture capital investment in the state went from less than $300 million to $539 million last year.
“Seeing the growth metrics of Arizona’s technology sector over the last year has been rewarding validation of the efforts of Arizona’s entire business ecosystem,” says Steve G. Zylstra, president and CEO of the Arizona Technology Council.
Those efforts are putting Arizona on good footing for further growth. Site selectors are looking at Arizona and Tucson tech commercial property to open businesses, relocate and expand.
Cyberstates 2019 analyzes tech sector and workforce data. In the most recent edition, its state- by-state rankings put Arizona
- 17th in net tech jobs added last year
- 18th in net tech employment
- 20th in the Cyberstates Innovation Score, which includes venture capital investments, tech startups and new business formations.
These reports confirm my belief that tech, which makes up more than 10% of the state’s economy, means continuing demand for Tucson tech commercial property.
Even more significantly to me is that every 100 jobs in the tech industry generate 220 jobs in other sectors. That’s a signal that commercial property demand will grow beyond tech.
Indeed, Pima County plans to grow its technical support and advanced business systems sector.
- general office
- data centers
- regional and corporate headquarters operations
- customer contact centers
- financial institutions
- insurance companies
- real estate firms.
“Arizona continues to be a center for technical support and advanced business services,” Pima’s report says. “Pima County continues to attract the expansion of advanced business services operations.”
I already see how this happens. When Caterpillar moved a regional office to Tucson, at least one engineering firm came along, too, to be closer to its major client. We helped that firm find the special Tucson tech commercial property it needed. I can do the same for other businesses Contact me for a free consultation.