Arizona’s tech wage 115% higher than median state wage
Phoenix Tech Job Sector Resilience and Growth
Amidst the challenges of the past year, the technology sector in Phoenix is witnessing a return to normalcy. According to CBRE Group Inc.’s “Tech 30” report, which assesses leading U.S. markets’ tech sector growth over the last decade, Phoenix experienced a remarkable 13.4% increase in high-tech software and service jobs during 2021-2022. This growth positions Phoenix at the 10th spot on the Tech 30 list, surpassing notable cities like San Francisco and Seattle. This surge accounts for more than 12,000 new jobs in the high-tech sector.
The tech sector has a $33.4 billion economic impact on the state of Arizona. CompTIA lists Phoenix as one of the sometimes “under the radar” tech cities. It also released a list of the top five leading tech occupation jobs in The Grand Canyon State and their projected growth rates from 2022 to 2023:
- Software (4.9%)
- IT Support Specialists (2.3%)
- Cybersecurity and Systems Engineers (4.0%)
- Network Engineers (2.9%)
- Database and Data Scientists (5.1%)
Tempe, a prominent tech submarket in the Valley, remains a key player, ranking fourth among Tech-30 submarkets for rent growth gains at an impressive 14%. This underscores the influence of proximity to major tech employers and universities, such as Arizona State University, in fostering higher rents, lower vacancy rates, and premium office space.
Shifts in Office Leasing Dynamics to Accommodate Tech Growth
Despite challenges, high-quality office space remains in demand, with increasing rents indicating a steady need for office space. Tech’s share of total office leasing activity has been on the rise, claiming 16.5% (7.3 million sq. ft.) in Q3 2023. This surge has enabled the tech industry to regain its top position in office leasing activity, surpassing the finance and insurance sector, which held a 15% share in the same quarter.
A thriving Phoenix tech job landscape is not only reflected in its job market but also in its resilience, growth, and strategic positioning in the Tech-30 rankings. JD Frank, Senior Account Executive and Partner at Prosum shares this about the Phoenix market:
“The city’s commitment to fostering innovation and supporting its tech workforce bodes well for the future. As venture capital continues to flow into the region and companies invest in high-quality office spaces, Phoenix stands as a compelling destination for tech professionals and businesses alike. The synergy of talent, investment, and favorable business conditions positions Phoenix as a rising star in the evolving tech industry landscape.”
Partner with Prosum
Prosum is a leading provider of premier information technology staffing and recruitment services in Phoenix. Trusted by local businesses, our expert IT recruiters offer specialized talent solutions to fill gaps and enhance existing teams efficiently and cost-effectively. Our unique approach blends cutting-edge technology with personalized recruiting, ensuring a deep understanding of our clients’ needs, goals, challenges, and company culture. This enables us to recommend top-tier tech professionals who add significant value to your team, distinguishing us as a more efficient and cost-effective choice compared to other tech staffing firms. For unparalleled IT staffing services, partner with Prosum, your trusted tech recruitment and IT temp agency in Phoenix, committed to delivering tailored solutions that meet your requirements.