Join Major Firms & Emerging Disruptors in Greater Phoenix
Cybersecurity and advanced computer technologies have been recognized by state and local governments as an industrial cornerstone for the Arizona economy. With a large cybersecurity and physical security industry presence in the region, major firms and emerging industry disruptors are selecting Greater Phoenix as the place to expand and grow their business. Local leaders are committed to supporting this vital industry and continuing Greater Phoenix’s growth into one of the cybersecurity market leaders in the nation.
Cybersecurity Industry Report
Get our 28-page, in-depth report on the cybersecurity ecosystem in Greater Phoenix.
Exceptional Talent Pipeline
Greater Phoenix is home to leading cybersecurity programs and training institutes that are producing the talent of tomorrow.
Robust Workforce
Specialized programs at universities across the state train talent. University alignment and partnerships assist in the undertaking of cybersecurity research and development.
Competitive Operating Costs
Real estate is more affordable compared to peer markets, and benefit costs are lower. There are a number of quality incentives to further decrease operating costs for your cybersecurity business.
Large Existing Cluster
Recently ranked in the top 20 for tech talent by CBRE, Greater Phoenix is one of the best cities in the nation to locate and expand cybersecurity operations.
Reliable Infrastructure
Greater Phoenix offers faster fiber connectivity, and consistent and reliable power coverage. The region’s robust network of data centers is complemented by access to a leading domestic and international airport and a low risk of natural disasters.
High Quality of Life
With affordable cost of living and shorter commute times, Greater Phoenix offers the time and resources to enjoy the more than 300 days of sunshine and endless local arts and culture activities.
Exceptional Talent Pipeline
Cybersecurity-Related College & University Programs
Higher education institutes in Greater Phoenix offer cutting-edge cybersecurity programs with specialized fields in computer engineering, information technology, computer and software engineering, and computer science. The region produced over 2,800 graduates in these fields during the 2019-2020 school year.
University & Corporate Collaboration
Greater Phoenix universities are committed to supplying the workforce needed to enable companies to scale in the region. Industry coordination with local universities and schools lead to specialized programs and partnerships for cybersecurity research and development.
Greater Phoenix Cybersecurity Graduates, 2018 – 2019 School Year
Below are the non-distance program completions in computer engineering, information technology, computer and software engineering, and computer science programs at local colleges and universities during the 2018 to 2019 school year.
|
Certificates |
Associate's |
Bachelor's |
Master's |
Doctorate |
|---|---|---|---|---|
540 |
300 |
1,106 |
796 |
83 |
Cyber-related degrees per 100,000 population
Source: Lightcast 2020 Q3 Dataset
Robust Workforce
Labor Pool
Greater Phoenix has a robust existing workforce at an affordable cost to start or relocate your cybersecurity business. Median wages in Metro Phoenix are lower than comparable peer markets and as one of the nation’s top cities for the cybersecurity industry, Phoenix continues to pave the way for innovation at a more affordable cost.
#1
county in U.S. for talent attraction (Maricopa County)
Source: Lightcast 2020, 2021
#2
best-performing U.S. labor market
Source: ThinkWhy, 2022
16%
growth of cybersecurity occupations in Greater Phoenix
Source: Lightcast 2021 Q1
Total employment for cybersecurity-related occupations in select metros
|
Phoenix |
Boston |
Los Angeles |
New York |
San Francisco |
Seattle |
|---|---|---|---|---|---|
122,443 |
209,723 |
282,428 |
444,414 |
207,292 |
202,719 |
Download the full industry analysis for more on the Greater Phoenix workforce and pipeline.
Competitive Operating Costs
Companies in Greater Phoenix enjoy the benefits of low business costs, minimal regulation and an advantageous operating environment. From aggressive tax credits and incentive programs designed to increase access to capital, the Greater Phoenix region offers businesses a robust, pro-business climate.
Annual Business Operating Cost Comparison
The Annual Business Operating Cost Pro-forma below estimates the cost of running a typical cybersecurity business in competitor markets across a handful of major expense categories. Component and custom analyses to match your company’s operations can be provided upon request. Contact us to request a custom analysis for your business.
| Metro |
Payroll |
Benefits |
Real Estate |
Property Tax |
Total Operating Cost |
Index |
|---|---|---|---|---|---|---|
Phoenix |
$8,654,637 |
$1,937,926 |
$289,200 |
$1,314 |
$10,883,077 |
100.0% |
Boston |
$10,191,857 |
$2,297,873 |
$724,700 |
$61,375 |
$13,275,805 |
120.0% |
Los Angeles |
$9,874,000 |
$2,235,576 |
$429,600 |
$29,275 |
$12,568,451 |
115.5% |
New York |
$10,625,206 |
$2,397,858 |
$820,000 |
$0 |
$13,825,064 |
127.0% |
San Francisco |
$11,357,996 |
$2,567,991 |
$980,900 |
$29,500 |
$14,936,387 |
137.2% |
Seattle |
$10,580,467 |
$2,399,858 |
$584,400 |
$22,166 |
$13,586,891 |
124.8% |
Assumptions: $2,500,000 personal property investment; 10,000 sq. ft. Central Business District facility; Monthly Utilities: Included in lease; 100 jobs: 30 Software Developers, Applications; 30 Information Security Analysts; 12 Computer Programmers; 10 Computer Network Support Specialists; 5 Office Clerks, General; 5 Computer Network Architects; 5 Network and Computer Systems Administrators; 2 Computer and Information Systems Managers; 1 General and Operations Managers. (Bureau of Labor Statistics equivalent occupations)
Taxes and Incentive Programs
Greater Phoenix’s friendly operating environment includes incentives for mitigating business costs such as tax credits and a designated Foreign Trade Zone. Here are three programs offered in the region.
Quality Jobs Tax Credit
The Quality Jobs Tax Credit awards qualifying companies $9,000 of corporate income tax credits per new net hire, spread over a three-year period.
R&D Tax Credit
There are three types of credits in this program, including refundable and nonrefundable, for qualified research and development done in Arizona, including company funded research at a state university. The credit amount is 24% of first $2.5 million in qualifying expenses plus 15% of the qualifying expenses in excess of $2.5 million.
HB2822
HB2822 changes the depreciation schedule by setting the full cash value of business and agricultural personal property to 2.5% of the property’s acquisition cost, thereby lowering the assessed value of the property to create a reduction in taxes. Over a 10-year period, the personal property tax on a $500 million property would be just $2.4 million, a fraction of the nearly $51-million tax on standard depreciation.
8.60%
average sales tax rate
4.90%
corporate income tax rate
$1.05
workers comp tax (rate per $100 payroll)
Source: Applied Economics MetrocompTool, November 2021
Calculate Your Real Estate Savings
Select your MSA, building type and square footage to see how much you would save on annual real estate costs in Greater Phoenix.
Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Type
Sq. Feet
Total Annual Savings
$
Calculations were performed using annual lease rates per square foot, effective property tax rates, and average costs of water, wastewater, electric and natural gas; utilities are included in office lease rates.
Sources: GPEC Metrocomp Tool; Costar Market Reports 2022
Download the full industry analysis for more on cybersecurity operation costs.
Large Existing Cluster
Greater Phoenix is home to a rich cybersecurity ecosystem. Part of this ecosystem is the non-cybersecurity firms that have cybersecurity operations within the region. These firms have chosen to locate their cybersecurity units in the region because of the quality and affordability of Greater Phoenix’s workforce.
Cybersecurity Firms in Greater Phoenix
Major Cybersecurity Operations in Greater Phoenix
Cybersecurity Venture Capital Deals
Greater Phoenix-headquartered firms
Greater Phoenix has a young innovation ecosystem with many growing companies. Since 2018, cybersecurity companies in Greater Phoenix have received more than $1.6 billion in venture capital. Below are some major cybersecurity deals in recent years that involve companies headquartered in Greater Phoenix.
February 2019: $25.0 Million
Tempe
Bishop Fox is the largest private professional services firm focused on offensive security testing. Since 2005, the firm has provided security consulting services and has worked with over 25% of the Fortune 100.
July 2020: $8.2 Million
Tempe
CYR3CON uses hacker-centered algorithms and artificial intelligence to predict and prevent cyber attacks. They can also prioritize vulnerabilities by likeliness to be exploited.
A LexisNexis Risk Solutions Company
June 2018: $10.0 Million
Chandler
Emailage (now LexisNexis Risk Solutions) provides fraud prevention and identity verification by utilizing machine learning algorithms and email transactions history to generate a predictive risk score.
January 2020: $20.0 Million
Scottsdale
Trusona secures identity authentication, removes passwords from the user experience and elevates login experience. The company works with over 200 organizations, including some of the world’s largest financial services and health care companies.
Visit cybersecurity leader Kudelski’s Greater Phoenix office, plus check out a local cyber warfare range in these immersive 360° videos.
Reliable Infrastructure
Reliable Power for Cybersecurity
Arizona has the second-most reliable power grid in the nation and 73% fewer natural disasters than the adjacent state of California. Over the last 10-year period, Arizona recorded only 33 total hours of disturbances. Reduce risk and increase operating efficiency moving to Greater Phoenix.
Grid System
Greater Phoenix was built in the age of the automobile, meaning the streets and highways were created for vehicles, featuring a well-planned grid system that provides convenient access to other west coast markets and more than 33 million consumers in a single-day truck haul.
Water Position
Arizona leads the nation with rigorous water conservation efforts, and because of the 1980 Groundwater Management Act, the state has legal and physical infrastructure that maintains a 100-year assured water supply to meet the needs of residents and industry. Learn more about Arizona’s water position.
Regional Rail Access
Union Pacific and BNSF rail lines and rail-served sites are available, including an intermodal station. There are transload and reload centers in key industrial corridors throughout Arizona.
Airline Connectivity & Access
Greater Phoenix is home to two commercial airports, Sky Harbor International Airport and Phoenix-Mesa Gateway International Airport. Sky Harbor, the larger of the two, offers more than 1,100 daily domestic and international flights and is consistently rated among the best airports in the country, while Gateway is home to SkyBridge, the nation’s only air cargo hub for U.S.-Mexico customs.
Ready to evaluate Greater Phoenix for your next location? Contact us to get started.
High Quality of Life
Experience a vibrant lifestyle and diverse culture at an affordable cost of living.
Enjoy the outdoors with more than 300 days of sunshine, average temperatures of 75 degrees, convenient access to over 400 hiking trails and globally recognized sporting events. Take part in a vibrant arts and culture scene that includes prominent classical arts to public art to craft markets and a diverse range of music and cultural events. And, eat well with fresh farmers markets in every city, and globally recognized chefs and culinary experiences at your doorstep.
7
professional sports teams in Greater Phoenix
15000+
capacity at five local music venues
400+
hiking trails in the region
