CBRE report ranks Minneapolis highly as a lure of tech talent

Minneapolis is getting a few steps closer to becoming a true tech hub, according to a new report by commercial real estate company CBRE.

The city jumped seven ranks to the 15th spot on CBRE's annual "Scoring Tech Talent" report, which ranks 50 markets in the United States and Canada on their ability to attract and grow tech talent. More talent means more offices needed to place them in.

"From start-ups with local roots in the area to giants putting a flag down, we're seeing a true transition into a technology hub," said Tad Jellison, an executive vice president in CBRE's Minneapolis office. "Much of the growth can be attributed to the world-class university and the expanding ecosystem of support for beta companies."

In Minneapolis, the North Loop neighborhood is becoming a hot spot for tech companies on the prowl for office space because of the character of the buildings and access to amenities such as public transit, housing and restaurants, according to the company.

In another CBRE report released last September, the tech industry was shown to have driven rental rates in the North Loop up more than 20 percent in two years with the neighborhood's office rents growing nearly twice as fast as the overall city's office rental rate of 10.7 percent. The numbers put the North Loop as the ninth-fastest-growing tech submarket.

This spring, Apple-only developer JAMF Software left the downtown Grain Exchange Building for larger digs in 100 Washington Square just outside the North Loop. Last month, Amazon.com Inc. announced a technology development office at the Fifth Street Towers.

"Tech talent growth, primarily within the high-tech industry, has recently been the top driver of office leasing activity in the U.S.," said the report's author, Colin Yasukochi, in a statement.

Rankings for the report were based on metrics including tech talent supply, growth, concentration and completed tech degrees, among other factors. The San Francisco Bay Area, Washington, D.C., and Seattle led the rankings.

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