By JLL
Currently, Boston is an ideal destination for those looking to thrive in the artificial intelligence (AI) landscape as well as explore cutting-edge technology. From attracting impressive venture funding and housing renowned AI companies to fostering a supportive tough tech ecosystem, Boston showcases a combination of factors that solidify its position as a leading global AI hub.
JLL’s recent report, Decoding Boston’s tech CRE market, explores the top five factors contributing to Boston’s success in the tech commercial real estate market.
Boston’s rise in the global AI landscape
Boston is well-positioned in the AI revolution due to established education institutions like Massachusetts Institute of Technology and Harvard University that pioneer remarkable ideas and have the necessary talent to bring them to life. Additionally, the city is home to several well-funded AI companies including DataRobot, Lightmatter, Path AI and Valo. Boston’s AI hub has attracted significant venture funding, surpassing countries like the UK, France and Germany. In fact, in terms of venture funding for AI, Boston ranks third in the U.S. and fifth in the world, behind only the Bay Area, Beijing, Shanghai, and New York City.
Leading the tough tech charge in the U.S.
Massachusetts is the second-largest tough tech cluster in the U.S., attracting significant venture funding and fostering a supportive environment for innovative companies. Key sectors in tough tech include robotics, medical devices, defense, clean energy and semiconductor research. Major companies like Nyobolt, Nth Cycle, Boston Metal and Electric Hydrogen lead the charge in tough tech innovation, positioning Massachusetts as a global leader in this arena.
A magnet for retaining STEM talent
Boston’s rich ecosystem of seven of the top 50 universities attracts world-class STEM talent. The region has witnessed an impressive 46% surge in STEM program graduates over the past five years, making it the third-highest STEM graduate producing region in the U.S. Institutions like Northeastern University, MIT and Boston University are producing specialized and technical talent that effectively fuels the growth of the tech sector and contributes to Boston’s status as an attractive career start destination.
Resilient job market
Despite the challenges posed by COVID-19 and economic headwinds, Boston’s tech job market continues to thrive. Prominent companies like Raytheon, MathWorks, Analog Devices, and Klaviyo lead the hiring front, highlighting the city’s resilience in the face of adversity. Remote work in the tech sector, which spiked during the pandemic, has retraced back to approximately 10% of job openings. Boston maintains its status as one of the premium tech job markets in the country, offering an impressive average salary of $188,000 per year.
A premium job market despite headwinds
Boston’s prestigious universities and highly regarded hospitals have contributed to the city’s exceptional patent activity. With a concentration of medical institutions, the city ranks third in the world for the highest patent activity per capita. Traditionally strong in biomedical and medical devices, Boston has witnessed a surge in patent activity across burgeoning tech fields such as clean tech, batteries and robotics. This diverse range of industry verticals fosters cross-collaboration and continuous discovery, keeping Boston at the forefront of global innovation.
Boston’s tech CRE market is thriving, propelled by its status as a global AI powerhouse. With impressive venture funding, a supportive tough tech ecosystem, a magnet for STEM talent, a resilient job market and high patent activity, Boston is poised for continued growth and success. As companies and professionals seek opportunities in the tech industry, Boston stands out as a premier destination that provides the necessary infrastructure, talent, and innovation ecosystem for long-term success.