According to a recently published report in Forbes Magazine, record high real-estate in silicone Valley is pushing tech startups to look for alternative locations.
Among the emerging Tech hubs, 5 including Miami stand out for a number of reasons, here’s a look at how real-estate prices might drive Miami’s Tech hub.
Miami’s Tech scene has been on the rise this decade. Companies are locating in Miami either to reach Latin America or to provide a U.S. foothold for Latin American Tech entrepreneurs, for example .CO Internet, which operates the top-level domain for Columbia.The key is the city’s potential. Miami startups brought in $49.4 million in VC funding in 2014, while existing VC-backed companies including health care IT provider CareCloud and mobile app developer KidoZen saw continued success. Meanwhile, infrastructure investments by firms aimed at helping grow the startup ecosystem in Miami have led to 19 Tech acquisitions since 2012.
If the Tech scene can be defined by potential, the best description of Miami’s real estate market is “resurgent.†Miami is one of the country’s key “hedge cities,†attracting foreign investors seeking U.S. bases of operations. This influx of outside capital was vital to the rapid recovery from the economic meltdown suffered by Miami late last decade.
While Miami’s population rose 4.8 percent from 2010 to 2013, and employment increased 2.9 percent in 2014 (and is expected to rise more than 10 percent by 2017), real estate prices have remained relatively low ($225K) even after an increase of 13.7 percent last year. These facts and a rise in construction led Miami to rank 19th in the ULI report, which also noted that continued improvements in Miami’s economy will create increased investor demand and a lot of real estate activity in 2015.
