Tech startups can bolster the economy, fuel commercial real estate

Tech startups can be a major boost to the commercial real estate sector.

Labor Day 2013 came and went on Sept. 2, but how many people actually had the day off from work to relax and hang out with friends and family, and how many people had the day off because they can't seem to find a job?

According to a letter from Walter Workman, the executive director for the Central Ohio Labor Council, to The Columbus Dispatch, one in 10 Americans can't find a job.

"We have a long road ahead to complete economic recovery and job creation," Workman wrote. "Let's remember that Americans want to work; let the politicians know that job creation should be their top priority for our nation."

According to a recent study from New Engine/Kauffman Foundation, the solution might come from the creation of new tech businesses.

High-tech startups typically generate a large number of available jobs, and the study says that the start of high-tech firms was nearly 70 percent higher in 2011 than in 1980. Over that same time frame, jobs created in the private sector decreased by 9 percent.

But a successful high-tech startup isn't just about job creation. It creates a trickle down effect that resonates in the community, which can be seen by commercial real estate agents and those living in the surrounding areas who will see a tax boom because of the new company.

And don't think that new tech companies will only help out the Silicon Valley economy. The New Engine/Kauffman Foundation study showed that high-tech startups are becoming increasingly diverse in their locations.

Whereas many businesses cluster together, high-tech firms are spreading a broad net and landing in places all over the country.

Here are the top three markets for tech startups:

1. Boulder, Colo.: The city has the most high-tech startups within its borders and has been recognized for its health and quality of life.

"In the case of Boulder, a startup community whose evolution I've observed and participated in closely over the past many years, the cultural and economic transformation has been extraordinary," Brad Felt, a venture capitalist, said in the Kauffman report.

Boulder's tech startup gathering is 6.3 times higher than the nation's average.

2. Fort Collins, Colo.: Named the best place to live in the U.S. by Money magazine, tech companies have also flocked to the city due to the research facilities at Colorado State University.

3. San Jose, Calif.: Beating out Seattle, Denver and Cambridge, Mass., San Jose is currently the top market for tech startups in the state of California.

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