CHICAGO—It's no secret that Silicon Valley is no longer the nation's only center for tech talent. Seattle, Austin, Denver, Boston and New York City all come to mind. However, by one measure none of these markets, with the exception of Seattle, are near the top of the rankings.

That measure is the top 25 metro areas by percentage of science and math degrees as a percentage of all bachelor's degrees. Although the San Jose metro area is in first place, JLL's ranking puts Seattle in 14th place behind Detroit. In between are several considerably smaller metro areas.

Columbus, IN, home of Purdue Polytechnic Institute, isn't far behind San Jose in percentage of STEM graduates. Another unexpectedly fertile field for tech grads—albeit more on a percentage basis than sheer numbers—is third-ranked Huntsville, AL. JLL notes that it's home to both NASA's Marshall Space Flight Center and Cummings Research Park, the second-largest research park in the US, as well as one of University of Alabama's three campuses.

The presence of another state university, the University of Michigan, is among the reasons for Ann Arbor, MI's high ranking in the top 25 for science and math grads (11th out of 25 nationally). The school offers both undergraduate and graduate degrees in computer science and engineering. Of Ann Arbor, JLL's Tech Office Trends report observes, “It's an interesting enclave of innovation, where Thomson Reuters, ProQuest and the Toyota Technical Center employ a combined total of more than 2,000 people.

Naturally, some of these STEM-degree hubs aren't far from major population centers. Columbus, IN, for example, is just 45 miles north of Indianapolis. And the California–Lexington Park, MD metro area—also a technology-driven area via the Patuxent

River Naval Air Station, which employs about 20,000 people—isn't all that distant from Baltimore or Washington, DC.

“In an industry characterized by speed and scale, hiring for fast growth has been a challenge in recent years,” says Julia Georgules, SVP and director of technology research at JLL. “A concentrated focus on STEM in higher education has given tech companies new markets to target outside of traditional tech hubs. Choosing the right location is critical, and looking at nearby talent pipelines is key.”

JLL's report makes the point that the search ought to include “future talent pipelines through universities.” After all, the presence of universities is a fundamental reason for the success of the two best-known tech hubs: Palo Alto, CA, home of Stanford University; and Cambridge, MA, where MIT is based.

Yet aside from the obvious examples, “there are many other universities to consider,” the report states. “Depending on a school's specialization, the right location could be a lucrative decision for future innovation. From driverless cars to electronic currencies and beyond, the next big thing in tech might still be in school.”

In the years following graduation, these future tech-sector employees may have some innovative thinking with regard to where they live and work, as well. Although Millennials have flocked to cities as they come of age, over time many will settle down, start families and adopt the suburban lifestyle. That's why, says JLL, employers in the tech sector need to examine the long-term consequences of where they choose to locate.

“As tech companies expand, it's important that they don't count out the suburbs quite yet,” says Amber Schiada, Los Angeles-based SVP and director of technology research at JLL. “Millennials will need housing within their budget and will want to ease their work-life balance. Tech companies of all shapes and sizes can make the right real estate decisions by carefully considering emerging economic, educational and real estate trends.”

River Naval Air Station, which employs about 20,000 people—isn't all that distant from Baltimore or Washington, DC.

Instant Insights /

STEM Grads: Looking Outside San Jose

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