NEW YORK--(BUSINESS WIRE)--
A new study by the real estate division of MetLife Investment Management entitled “Tech Markets 2.0”, highlights the emergence of a new generation of technology hubs with positive long-term drivers that offer real estate investors growth and diversification opportunities beyond the traditional “core” tech markets.
These “NextTech” markets, including Washington, D.C.; Pittsburgh; Salt Lake City; and San Diego, provide investors with the ability to craft focused investment strategies that target real estate demand driven by specific tech industries.
Often supported by strong university systems, enjoying substantially lower costs of living, and benefiting from the skill and experience of transplants from the core tech markets, the NextTech markets have witnessed a rapid increase in science, technology, engineering and mathematics (STEM) jobs over the last three years. These increases are gradually reshaping their local economies as STEM employment makes up an ever greater share of the total.
While core tech markets such as Boston and San Francisco still top the nation in the rate of STEM growth and its role in local economies, many of the NextTech markets are not far behind. According to the study, during the three-year period from 2014 to 2016, STEM jobs accounted for 20 percent of the total job growth in core tech markets, compared to 11 percent in the primary NextTech markets and 13 percent in the secondary NextTech markets.
Specifically during this three-year period, the study notes that there were 490,000 new STEM jobs created in the U.S., with more than two-thirds of them created outside of the core tech markets. In many of these NextTech markets, STEM job growth accounted for a significant share of the total, including 44 percent in Pittsburgh, 19 percent in Provo, Utah, and 15 percent in Washington, D.C.
“The NextTech markets are poised to outperform in this cycle and the next,” said Adam Ruggiero, associate director, MetLife Investment Management. “The shift towards specializations in these markets also offers investors the opportunity to place strong bets on the technologies of the future and the real estate demand their success will generate. They offer lower concentration risk, strong starting yields, solid income growth, and rich future valuations.”
A copy of the study is available upon request.
About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is one of the largest life insurance companies in the world. Founded in 1868, MetLife is a global provider of life insurance, annuities, employee benefits and asset management. Serving approximately 100 million customers, MetLife has operations in nearly 50 countries and holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.
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