Tech Talent Report

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Phoenix has jumped nine spots to number 11 in the nation in a new report on tech talent. Kevin Calihan, senior vice president of advisory and transaction services for CBRE, the real estate research firm that put out the report, will tell us more.

TED SIMONS: TONIGHT HE'S EDITION OF ARIZONA TECHNOLOGY AND INNOVATION LOOKS AT HOW PHOENIX HAS JUMPED NINE SPOTS, TO NUMBER 11 IN THE NATION IN A NEW REPORT ON TECH TALENT. JOINING US IS KEVIN CALIHAN, SENIOR VICE PRESIDENT OF ADVISORY AND TRANSACTION SERVICES FOR CBRE, THE REAL ESTATE RESEARCH FIRM.

KEVIN CALIHAN: WE TOOK 13 METRICS WHERE TECH TALENT IS LOCATED AND WHAT KIND OF JOBS ARE BEING CREATED AND THE WAGES AND COST LIVING AND TRIED TO DETERMINE WHERE THE BEST PLACE IS TO FIND TECHNOLOGY WORKERS AND ARIZONA SCORED HIGH.11TH NATIONALLY.

TED SIMONS: JUMPING UP FROM -- WHAT? -- 20TH.

KEVIN CALIHAN: MOVING UP THE LIST, WE'RE STILL BEHIND THE POWERHOUSES, SEATTLE, SAN FRANCISCO, WASHINGTON, BUT OUR GROWTH HAS BEEN PHENOMENAL.

TED SIMONS: THESE ARE MEASURED BY THE ABILITY TO ATTRACT AND GROW, TO FIND TECH TALENT.

KEVIN CALIHAN: TECH TALENT IS FOCUSED ON PEOPLE WHO HAVE HIGHLY TECHNICAL JOBS. SOFTWARE ENGINEERS AND DEVELOPERS AND COMPUTER MANAGERS AND I.T. DIRECTORS, REALLY ANYONE WHO IS SOFTWARE.

TED SIMONS: AND WE ARE NUMBER SIX ON THE TOP MOMENTUM MARKET.

KEVIN CALIHAN: WE'VE GOT A GREAT MOMENTUM BECAUSE WE HAVE A GREAT STORY TO TELL. WE HAVE A VERY AFFORDABLE TECHNOLOGY LABORS FOR AND FORCE THAT IS GROWING VERY QUICKLY AND WE HAVE A LOT OF MOMENTUM BECAUSE BIG EMPLOYERS WANT TO BE HERE CHASING OUR GREAT TALENT.

TED SIMONS: WHY WOULD TECHIES COME HERE AS OPPOSED TO SAN FRANCISCO, WASHINGTON D.C., SEATTLE, THE BIGGIES?

KEVIN CALIHAN: A COUPLE REASON, THIS IS A GREAT ONE, WE'RE THE SECOND MOST AFFORDABLE WHEN IT COME TO THE SALARY A TECH EMPLOYEE CAN EARN VERSUS WHAT IT COSTS TO RENT AN APARTMENT.IF YOU ARE A TECH EMPLOYEE AND WANT A GREAT STANDARD OF LIVING, ARIZONA IS A GREAT PLACE. WE HAVE A FAVORABLE BUSINESS ENVIRONMENT AND OUR PROXIMITY TO -- SAN FRANCISCO BY AND AWAY LEADS THE COUNTRY IN TECH JOB CREATIONS.SOME OF THOSE COMPANIES WANT TO GET OUT, BECAUSE IT'S A HIGH COST LABOR MARKET SO METRO PHOENIX IS A GREAT BENEFICIARY FOR THOSE FACOTRS.

TED SIMONS: AND YET, PHOENIX, 4.8% LOSS OF MILLENNIALS, WHAT'S GOING ON HERE.

KEVIN CALIHAN: THAT'S A LITTLE SKEWED. TECHNOLOGY COMPANIES TEND TO CLUSTER AND THEY PREFER URBAN AREAS AND THAT FOCUSES JUST ON DOWNTOWN PHOENIX WHERE WE HAD A NET LOSS OF MILLENNIAL, BUT VALLEY WIDE WE HAD A NET GAIN OF 11 PERCENT, BECAUSE DOWNTOWN SCOTTSDALE AND TEMPE ARE HOTBEDS DRIVING THE ATTRACTION IN OUR MARKET AND ALTHOUGH THE PHOENIX PART ISN'T GREAT, THE METRO AREA PORTION IS PRETTY GOOD.

TED SIMONS: A LITTLE CHERRY PICKING.LET'S CHERRY PICK AGAIN.AS FAR AS BRAIN DRAIN, WE'RE ON UP THERE.SOUNDS AS THOUGH WE'RE TRAINING A LOT OF FOLKS BUT THEY'RE GETTING JOBS SOMEWHERE ELSE.

KEVIN CALIHAN: OUR UNIVERSITIES ARE DOING A PHENOMENAL JOB OF PUTTING OUT TALENT. 44,000 REALLY TECH-READY WORKERS, AND ONLY EMPLOY 31,000 LOCALLY, WHICH MEANS THERE WERE SECOND IN THE COUNTRY IN NET EXPORTING BEHIND THE BOSTON AREA WHICH HAS A GREAT UNIVERSITY INFRASTRUCTURE. THE GOOD NEWS, WE'VE GOT A LOT OF SLACK IN OUR EMPLOYMENT POOL. IF YOU'RE A BIG EMPLOYER, LOOKING FOR TECH PEOPLE COMING OUT OF UNIVERSITIES AND READY TO GO. PHOENIX IS THE SECOND BEST PLACE TO FIND THEM WHERE THEY CAN'T FIND A JOB.

TED SIMONS: THE IMPACT OF THE TECHNOLOGY SECTOR ON BUSINESS IN GENERAL, HUGE.THE OFFICE LEASES AND THE WHOLE NINE YARDS.

KEVIN CALIHAN: TWO TIMES THE AVERAGE WAGE, AND TECH COMPANIES, THESE ONES HIGHER HIRING THE TECHNICAL PEOPLE ACCOUNTING FOR 20% OF OFFICE LEASING NATIONALLY AND THE LARGEST SECTOR OF THE OFFICE LEASING MARKET AND THE FASTEST GROWING, SO TO BE SUCCESSFUL IN THE OFFICE REAL ESTATE BUSINESS YOU HAVE TO KNOW WHERE THE TECHNOLOGY PEOPLE ARE GOING TO BE.

TED SIMONS: IF WE LOOK AT PHOENIX, THE GENERAL PHOENIX AREA AS A SUCCESS STORY, IT'SBECAUSE --

KEVIN CALIHAN: GREAT BUSINESS CLIMATE. TONS OF AFFORDABLE LABOR AND A GROWING LABOR POOL.

TED SIMONS: WITH THAT IN MIND, WHAT DO WE TAKE FROM THIS STUDY?

KEVIN CALIHAN: WE'VE GOT A GREAT STORY TO TELL, WE NEED EVERYONE TO PUSH HOW GREAT OF A PLACE TO BE, IN METRO PHOENIX AND HOW MANY EMPLOYEES WE CAN PUT INTO WORK IF WE CAN GET THE RIGHT EMPLOYERS TO COME HERE.

TED SIMONS: THE CIVIC LEADERS, MOVERS AND SHAKERS, BIG CIGAR, POLITICALLY, WHAT WOULD YOU TELL THEM? WHAT NEEDS TO BE DON TO GET THE NUMBERS INTO THE TOMORROW 10.

KEVIN CALIHAN: THEY'RE DOING A GREAT JOB, WE'RE MOVING UPWARDS FASTER THAN ALMOST ANY METRO MARKET, WOULD I SAY KEEP DOING WHAT YOU'RE DOING, KEEP PUTS MONEY INTO EDUCATION. ASU HAS BEEN A GREAT PARTNER FOR THE BUSINESS COMMUNITY. THE STORY IS POSITIVE, IT'S REALLY KEEP DOING WHAT YOU'RE DOING AND BE POSITIVE ABOUT SHARING THE MESSAGE.

TED SIMONS: ARE HE SEEING FROM PRESCOTT DOWN TO TUCSON, ARE WE SEEING THAT AS FAR AS TECHNOLOGY OR IS THE VALLEY STRONG?

KEVIN CALIHAN: IT'S FOCUSED ON THE VALLEY.DOWNTOWN SCOTTSDALE AND DOWNTOWN TEMPE, SOUTH INTO CHANDLER ALONG THE LOOP 101 ARE REALLY THE DOMINANT PLAYERS WITH DOWNTOWN PHOENIX STARTING TO EMERGE.

TED SIMONS: THE REPORT IS ENCOURAGING FOR THE AREA BUT IT CAN ALWAYS GET BETTER.

KEVIN CALIHAN: IT'S GREAT AND COULD GET BETTER.

TED SIMONS: GOOD TO HAVE YOU HERE.

TED SIMONS: THURSDAY ON "ARIZONA HORIZON," WE'LL HAVE ANALYSIS ON THE REPUBLICAN NATIONAL CONVENTION WITH LOCAL POLITICAL CONSULTANTS HERE IN THE STUDIO AND LIVE VIA SATELLITE FROM CLEVELAND.A CONVENTION WRAP JULY.AND A REMINDER, IF WOULD YOU LIKE TO WATCH TONIGHT'S PROGRAM AGAIN OR SEE PREVIOUS EDITIONS OF "ARIZONA HORIZON," SEE WHAT WE HAVE IN STORE FOR THE FEW. CHECK US OUT AZPBS.ORG/HORIZON.THAT'S IT FOR NOW, I'M TED SIMONS, THANK YOU SO MUCH FOR JOINING US.YOU HAVE A GREAT EVENING!

Kevin Calihan - senior vice president of advisory and transaction services for CBRE

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