Chris Carmen / May 18, 2016
It’s common knowledge that the technology industry is booming, with new startups emerging at a rapid pace. With newfound growth, these companies are also considering relocation and the criteria that merits a move. Indianapolis has emerged as an appealing target, earning a reputation as a tech hub of the Midwest.
In 2015, TechPoint conducted a study to examine the impact the tech industry has had on Indianapolis. The study showed that jobs within the tech industry increased by 17%, substantially exceeding the growth of other jobs.
Indianapolis continues to be on track to bring more tech jobs to the city with the recent name change of Chase Tower to Salesforce Tower. Salesforce reported that over the next five years, it will add 800 jobs at its Indianapolis location. This outstanding growth keeps Indianapolis on the map as a destination that appeals to high profile and enterprise-level technology companies.
There have been a number of reasons behind Indianapolis’ growth as a tech hub, but a business’ ability to operate at a lower cost than elsewhere around the U.S. has been significant. As an office tenant advisor, we are continually reminded how businesses can rent office space in Central Indiana at a cost significantly lower than other tier one and tier two cities.
For example, a class A office space located in Indianapolis and the surrounding communities range in annual cost between $19-$26 per square foot. The same space located in Chicago will range between $28-$40 per square foot. Although facility cost will typically only account for 4-7% of a company’s overhead, the same savings can be found in most other business operating costs.
Companies such as T2 Systems, Bluelock, and Interactive Intelligence began Indianapolis’ transformation into the tech hub it is today. With tech companies such as Return Path and Geofeedia moving their headquarters to Indianapolis, the city will continue on its path to being a prominent home for tech firms.
« Previous Next »