Newark, NJ Lands at #25 on CBRE’s Annual ‘Scoring Tech Talent’ Report
15 Jul 2020
Newark stands out among largest North American tech-talent labor pools for its high tech-degree completion ratio and relatively low cost of living
Newark, N.J., ranks #25 on CBRE’s Tech Talent Scorecard, part of its annual Scoring Tech Talent Report, which ranks 50 North American markets according to their ability to attract and grow tech talent.
Tech labor concentration – or the percentage of total employment – is an influential factor in how “tech-centric” the market is and its growth potential. Newark’s tech-talent labor pool is comprised of 53,901 workers—most of which are jobs in software development, computer programming and database system management—and amounts to 4.5 percent of the overall workforce. The national average is 3.7 percent.
The top five markets for tech talent in 2020 were the San Francisco Bay Area, Washington DC, Seattle, Toronto, and New York, all large markets with a tech labor pool of more than 100,000. Newark’s ranking increased three spots this year from 28th last year.
“Newark remains one of the strongest markets in the Northeast for tech-related businesses given the percentage of young, highly educated people in the city as well as the competitive rents and cost of living when compared to other major markets in the region,” said Jon Meisel of CBRE. “Given the growth of both technology and logistics over the past few years, and especially during the global pandemic, Newark’s technology sector is well positioned to continue its upward trajectory.”
The report outlines how tech-talent jobs are positioned to weather COVID-19 and related shutdowns and the ensuing recession because, more than ever, companies across all industries need the technical skills that this talent base offers. Many tech products and services such as streaming, remote communications and social media now are in higher demand to support remote work and social distancing.
Tech employment has shown it can withstand economic shocks: In the 2008-2010 recession, tech-talent employment declined by 0.5 percent while overall U.S. employment registered a 5.5 percent drop.
CBRE’s Tech Talent Scorecard is determined based on 13 unique metrics, including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth, and market outlook for both office and apartment rent cost growth.
“We expect that most tech-talent markets and professions will thrive after the pandemic subsides, and many that facilitate remote work and tech services such as e-commerce, social media and streaming services may have even greater growth opportunities accelerated by the COVID-19 disruption,” said Colin Yasukochi, Executive Director of CBRE’s Tech Insights Center. “Markets that have strong innovation infrastructure – leading universities and high concentrations of tech jobs – will lead the next growth cycle.”
Newark stood out in the report in several other key areas:
- The rent-to-wage ratio in Newark remains relatively low at 19.4 percent. The average apartment rent for a year is $21,074, and the average annual tech wage is $108,602. In contrast, the most expensive market, New York (Manhattan), those numbers are $48,508 and $110,591 (a rent-to-wage ratio of 43.9 percent) respectively.
- In 2018, 2,901 tech degrees were completed in Newark - a 58.4 percent increase from 2014.
- The number of millennials (age 22-37) moving to Newark since 2013 increased by 5,881, or 3.5 percent.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.