5 Reasons Why Tech Companies are Moving to Arizona in Droves
Posted by: CENTURY 21 Northwest
Date: September 24, 2018
Posted by: CENTURY 21 Northwest
Date: September 24, 2018
If you pay attention to local news, then you’ll notice that the idea of tech companies moving to Arizona is fairly common at this point. It seems like a new company is relocating every month, and that’s honestly not far from the truth. New companies are moving to the region all the time, largely due to how attractive it seems to businesses. Understanding why can help you to see that the moves happening now are just a preview of what is to come.
While the reality of tech companies moving to Arizona is a given, it might be interesting to further explore why so many are on the move. The American tech sector is an interesting place at the moment. While tech companies are certainly becoming bigger than ever, they’re also starting to run up against major operating costs in Silicon Valley. It’s becoming harder and harder for new companies to find real estate, and for older companies to compete when overhead has become such a huge part of doing business. As such, many have taken a look at the following factors and have chosen to make the move to Arizona.
While it might not be the most important reason behind tech companies moving to Arizona, it should be noted that Arizona is not actually all that far away from Silicon Valley. It’s just a quick plane ride away from the nation’s tech hub, and that can be quite meaningful for businesses that are looking to expand. Arizona gives business owners the ability to be away from the Valley in order to do business, but not so far away that they can’t collaborate with those still in the area. Being just close enough to stay in contact can mean quite a bit for new businesses that are still trying to become major players in the tech game.
Tech companies tend to look for young and educated individuals in order to bolster their ranks and get the kind of talent that can lead to future success. Traditionally, this has meant paying incredibly high salaries to unproven employees in the hopes that the competition wouldn’t scoop them up. A huge sea change has come with moving to Arizona, though, because of the state’s young population and its seemingly endless supply of new grads. While the salaries are still high, companies take less of a gamble in Arizona.
Phoenix is one of the most popular cities for millennials and thus a major potential hub for the tech sector. New grads are especially prized as they tend to have a strong work ethic and are open to new ideas. One reason behind many tech companies moving to Arizona is to take advantage of this growing labor market and to ensure that they have access to the best and brightest minds in the country.
Arizona has made it very clear that it is open to business investment. The state has put in place a number of initiatives to attract new businesses and many of them are particularly attractive to tech companies. While there are still the typical business regulations in place, the state has made sure to make the environment attractive to those businesses that want to grow and further invest in the economy of Arizona.
Even without the moves the state has made, it would still be attractive to businesses because of the lower cost of living. While Arizona may not have the lowest cost of living in the nation, that cost is incredibly low when one compares it to the cost of living in the Silicon Valley region. Office space, for example, costs less than half of what it would cost in the Bay Area. Money also goes much farther in Arizona, giving employees to put money towards more than just the outrageous cost of Bay Area housing.
The popularity of the state has, in some ways, contributed to the tech companies that have chosen to relocate. While the first few companies to make the move might have been pioneers, those that have followed behind them are moving into spaces that are ideal for tech companies. Because so many other tech companies have chosen to make Arizona their home, it’s become trendy to relocate to the area.
Trends aside, it makes sense for tech companies to follow in the footsteps of their competitors. Tech is an incredibly cut-throat market, so a company can’t ignore any advantages. If one company makes the move and it impacts that company’s bottom line in a positive manner, other companies almost certainly have to do the same to stay competitive. Now that Arizona has been established as a profitable area from which a tech company can operate, many companies will feel the necessity of moving to the area. It is certainly a case where the initial moves are responsible for later moves, but it just goes to show how important having the right headquarters can be for a company.
There is also something to be said for the quality of life one gets in Arizona. This is a region that has a little bit of everything, from the bustling cities to nearly untouched nature. If a company is worried about the quality of life that its employees will experience off the job, Arizona can put those fears to rest. The atmosphere of the area is simply more conducive to creativity than that which might be found elsewhere.
The quality of life one can experience in Arizona also extends to the attitudes of those in the state. It is part of a region that’s on the rise, a place where growth and change really feel possible. It’s also a place where new people are made to feel welcome, thanks largely to the fact that the majority of the state’s citizens are not native to the area. If a business wants to relocate, moving to a place like Arizona simply makes sense.
Tech companies moving to Arizona in droves is still a commonly occurring thing. Whether they’re looking for a better atmosphere, better employees or just a lower cost of operation, they’ll find it here. As these companies move, so too will their employees and the businesses needed to support them. As such, it’s important to keep an eye on the housing market in the region. If you’re looking to relocate your company to Arizona or if you just want to take advantage of the new job opportunities in the area, you should take advantage of the CENTURY21 Northwest home buyer widget, or contact one of our trusted realtors today.
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