The pool of tech talent in Los Angeles is growing rapidly. According to a new report from CBRE, Los Angeles is one of the top tech talent markets nationally and the third largest tech talent market on the West Coast, behind only Seattle and San Francisco. Since the last tech talent survey, Los Angeles moved up three places from 26^th to 23^rd on the list of the largest tech talent markets in the country.

“The two main factors driving tech talent growth in Los Angeles are interrelated—demand from tech employers seeking to tap into the talent-rich environment in Southern California and the high level of new talent supply being developed by regional universities,” Colin Yasukochi, director of research and analysis at CBRE, tells GlobeSt.com. “This is particularly evident for tech employers expanding their Hollywood-produced original content for video streaming. Los Angeles had nearly 42,000 tech degree graduates over the past five years and only 20,000 new tech jobs, a deficit of 22,000.”

While Los Angeles is a top market for producing tech talent and many people stay, many also leave the market. “Those graduates had to leave the region to seek tech employment elsewhere, something that we have dubbed “brain drain.” This is a significant positive factor driving tech talent growth in the region, given the tight labor market in major tech centers like the San Francisco Bay Area and Seattle,” says Yasukochi. “Tech employers want to expand in areas such as Los Angeles with a large, growing and high-quality tech talent workforce.”

While the market still trails behind the tech giants of San Francisco and Seattle, it isn’t necessarily in the same class or a strong comparable market. “The major tech hubs of San Francisco and Seattle dominate tech-related growth since they have a high concentration of headquartered household-name tech companies located there,” explains Yasukochi. “Los Angeles will likely establish its own distinguished growth trajectory related to its competitive advantages in the media and entertainment business where it’s already the leader and further expanding its influence.”

For the commercial real estate sector, however, the growth of tech talent has had a major impact on the office market, and has spurred new office development. “Major tech firms have become the growth engine for office space in Los Angeles with 6.7 million square feet leased over the past two years,” says Yasukochi. “Much of this demand was for large blocks of space greater than 100,000 square feet. This has depleted supply of large blocks of space, thus causing rents to rise and accelerating new office development.”

And, it isn’t only office. Tech talent and tech jobs are fueling growth throughout the market. “Tech employers are creating new jobs with above-average wages, and that creates demand for additional housing and for retailers,” says Yasukochi. “While these jobs still only represent 3% of the overall Los Angeles workforce, they are a catalyst for related job creation, and therefore economically beneficial on a broader scale.”