In recent years, Houston has been dubbed the “Silicon Bayou” due to enticing commercial real estate opportunities that have led tech companies nationwide to take note. In particular, a number tech firms headquartered in California, such as Hewlett Packard Enterprise (HPE), have been researching and planning relocations to Houston. Here, we break down the many reasons Houston has begun getting so much attention from the tech industry.
Prices to own or lease space in Houston — not to mention overall business taxes — are significantly lower than in Silicon Valley. That means that companies who set up shop in the Houston area have more money they can put toward operations. The cost of payroll is also more affordable, thanks to the Houston area’s lower cost of living. For example, according to NerdWallet, the cost of living in San Francisco, California, is 108 percent more than that of Houston, Texas. A tech company can pay programmers in Houston approximately 50 percent less in salary, and that pay will still be considered a good wage. Why? Because the cost of living is so much lower.
Access to Talent
Houston is a melting pot of people and industries. Because of this, the region is overflowing with experienced talent. The tech industry, wanting to tap into this talent base, is using Houston relocation as a way to gain access to professionals who have a knowledgeable background, and who would serve as strategic additions to their arsenal of team members.
Proximity to Clients
Houston is home to a diverse portfolio of businesses which include, but are not limited to, space exploration, energy, oil and gas, petrochemical, construction, medical, engineering and manufacturing. As such, it makes sense for these tech giants to move closer to their clientele. By making themselves more accessible to their customer base, they encourage customer loyalty and have the opportunity to grow their business by adding to their portfolio.
With so many great commercial real estate opportunities available right now in the Houston real estate market, the tech industry is ready to take advantage of this appealing affordability. If Houston relocation is on your company’s to-do list, contact Belvoir! We would love to discuss all the commercial real estate opportunities available in Houston and the surrounding area, as well as answer any other questions you may have. Here are 3 Houston real estate projects to look for in 2020.