BOSTON, MA—The Greater Boston/Cambridge region is one of the top technology markets in the United States. Tech firms are making business decisions to locate here based on future growth rather than simply cost –per-square-foot factors.

Greater Boston, including Cambridge, ranks sixth in total tech leasing and fifth in high-tech venture capital financing among the top U.S. markets, according to the JLL 2015 United States Technology Office Outlook.

Whether they are start-ups or expansion technology companies, making Boston or Cambridge their corporate address is coming with a high price tag. Northern California holds nine of the top 15 most expensive in-demand technology submarkets, while East Cambridge ranked No. 10 with an average asking rent of $67.21-a-square-foot. Downtown Palo Alto, CA came in first at $98.68-a-square-foot, followed by another Silicon Valley locale Downtown Mountain View, CA at $87.53-a-square-foot. San Francisco ($81.50), Hudson Square ($81.50) in New York City and New York City's SoHo district ($79.80) rounded out the top five.

"Cambridge is one of the strongest markets that we track globally at JLL," says Molly Heath, senior vice president of JLL's Cambridge leasing team. "The technology industry really views a home in Cambridge as essential to driving their business." The key drivers for Boston/Cambridge are the available workforce as well as the 53 higher education institutions in the region, including Harvard University and MIT.

JLL evaluated the top tech markets for market startup opportunity and cost, in its proprietary Locator Matrix to determine which locations offer the right fit for start-up and small to mid-sized tech firms. Greater Boston, along with other high priced locations such as San Francisco, Silicon Valley and New York City, were characterized as "high cost, high startup opportunity areas." Those markets present clear opportunities due to existing tech clusters, greater access to capital, including venture capital, higher concentration of innovation, and especially in the case of Boston, great talent accessibility. For tech companies with less cost sensitivity, these are the best target markets for growth, JLL states.

"High cost, high opportunity is a reflection of the people," states Bryan Sparkes, senior vice president of JLL's Downtown Boston leasing team. "These companies are all trying to attract the top talent, and they're staying here and they're growing here because the talent is here."

"Companies weigh the real estate cost against the talent they can access that they know they need," Heath says. "It becomes a business decision versus a real estate decision and ultimately they're willing to pay to be here because they know that they have to be."

She says Charlestown and Somerville for example are emerging tertiary markets that offer opportunities for value for small and fledgling tech firms. Both markets, while less costly, provide mass transit access to Greater Boston.

However, Heath stresses that most of the tech leasing and investment activity is centered in Boston and Cambridge. "Rather than seeking value, companies are locating in Cambridge and Boston because they are willing to pay a premium to be there because they know that is going to help them (grow and recruit workers)," Heath adds.