two colleagues collaborating, reviewing code

Greater Phoenix: Tech Hub

Move Your Business

There’s a reason hundreds of companies are moving or expanding from California to Arizona.

Greater Phoenix offers an affordable, high quality of life for your people and more reliable infrastructure, lower operating costs and fewer regulations for your business. Browse the data below to learn more. Select from the key factors to jump to a category of interest, or continue scrolling to view all.

Key Factors

Greater Phoenix Snapshot

#1

Fastest-Growing U.S. Market

ACS 2019 1-year

#2

Largest Western U.S. Labor Pool

Emsi 2021 Q1

37.2

Median Age

U.S. Census Bureau

4948203

Population

U.S. Census Bureau

Demographics & Growth

The Fastest-Growing U.S. Market: Maricopa County had the largest population growth in the U.S. over the last nine years. And, with a median age of just 37.2, Greater Phoenix is a younger market than San Francisco and San Jose.

Source: U.S. Census Bureau; ACS 2019 1-year

National Rankings

#1

Job Growth
vs. California at 22nd

U.S. News & World Report, 2021

#1

New Resident Inflow
vs. Bay Area, 4th-highest outflow

Redfin, 2021 Report

#5

Projected Tech Growth

CompTIA, Cyberstates 2021

#7

Best States for Business
California was last

Chief Executive, 2020

Quality of Life

San Francisco labor costs are 48% higher than in Greater Phoenix, but living costs are 90% higher — you can save on labor while your employees afford more in Greater Phoenix.

Greater Phoenix offers 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. Select a category of interest to learn more about Greater Phoenix living.

Source: COLI 2020 Annual Average

Phoenix vs. San Francisco

8.0%

Top Individual Income Tax Rate
vs. 13.3% in SF

AZ Department of Revenue; State of CA Franchise Tax Board

$336K

Median Home Value
vs. $1.18M in SF

Zillow, ZHVI

Grid Reliability

Over the last 10-year period, Arizona experienced only 33 hours of disturbances. California reported 8,379 hours of downtime in the same time period.

No Downtime

Greater Phoenix has the second-most reliable power grid in the nation, advanced infrastructure and 73% fewer natural disasters. Reduce risk and increase operating efficiency relocating to Greater Phoenix.

Reliable Infrastructure + Low Risk

#2

Most Reliable Power Grid
vs. CA at #19

U.S. News & World Report

33hrs

Total AZ Downtime, 2010-2020
vs. 8,379 Hours in CA

U.S. News & World Report

73%

Fewer natural disasters in AZ vs. CA

FEMA, 2010-2020 Summary

Tech Clusters

Greater Phoenix is a young, rapidly growing tech hub — it’s affordable, unsaturated and driven by innovation.

The ecosystem of local innovators, founders, incubators, accelerators and investors grows each day. For example, $1.6 billion in venture capital was raised by local companies in the last decade, but 33% of it ($546.5 million) was raised in 2020 alone.

Source: GPEC Analysis

13,025

Technology Companies

Source: CompTIA, 2021 Cyberstates

727

Software Companies

Source: Gregslist

239

Startups

Source: Gregslist

99

VC-Funded Startups

Source: Gregslist

Bay Area Companies Choose Greater Phoenix

This is just a small sample of California companies we’ve helped relocate or expand into Greater Phoenix.

 

Opendoor chooses Greater Phoenix in 2015, since expanded in Scottsdale and Tempe

Robinhood

See the Case Study with Moov
Downtown Tempe office building reflecting bright sky and clouds

Silicon Valley-founded Moov Technologies managed to profit during the global chip shortage after opening a hub in Chandler, Ariz. in 2019. During the pandemic, Moov doubled down on its Greater Phoenix expansion and headcount quickly surpassed the San Francisco office.

In the year and a half since first expanding into Arizona, Moov’s revenue has increased by more than 1,000%.

With almost 90% of its employees already in Greater Phoenix, Moov announced in March 2021 that the company was shifting its headquarters from the Bay Area to Tempe, Ariz.

Read the Case Study

Cost Savings

Competitive operating costs, a pro-business tax environment and incentive programs enable you to save on fundamental business costs in Greater Phoenix.

  • Payroll: 22% lower than Bay Area labor costs
  • Benefits: 23% lower than Bay Area benefit costs
  • Real Estate: 59% lower than Bay Area office space
  • Property Tax: 26% lower than Bay Area commercial office real estate
  • Corporate Income Tax Rate is 45% lower (4.9% vs. 8.84%)
  • Incentives: Programs include a tax credits on quality jobs, qualified facilities, renewable energy investment, headquarter relocations, R&D operations and more.

Office Savings Calculator

Calculate your office real estate savings by selecting your current metro and office size to see how much you would save annually on a comparable office space in Greater Phoenix. Calculations are based on annual lease rates per square foot, effective property tax rates, and average costs of water, wastewater, electric and natural gas; utilities are included in lease rates.

Austin
Dallas
Denver
Los Angeles
Portland
San Francisco
Seattle
Sq. Feet
Annual Savings in Greater Phoenix
$

Project assumptions for business costs are $500,000 personal property investment, 10,000 square foot central business district, utilities included in lease and 50 jobs (Bureau of Labor Statistics equivalent occupations). Sources: GPEC Metrocomp Tool; 2021 Costar Market Reports

Cut Your Costs in Half

4.9%

Corporate Income Tax Rate
vs. 8.84% in CA

AZ Department of Revenue; State of CA Franchise Tax Board

$27.98

Avg. Mid-Size Office Cost Per SqFt
vs. $60.23 in SF

2021 Costar Market Reports; GPEC Metrocomp Tool

Talent Pool

Tap into a large, diverse talent pool fueled by more than 40 universities and institutions of higher learning.

Greater Phoenix is home to the second-largest labor pool in the Western U.S., and boasts an exceptional talent pool and pipeline with tech-specific programs at the high school, community college and university level. While the Bay Area has the reputation, Phoenix stacks up favorably in talent pipeline, with 2,831 students working on degrees in a variety of tech fields in computer science, engineering and other services, compared to 3,242 students in San Francisco.

Source: Emsi 2021 Q1

General Assembly launches programming in October at GA’s new Scottsdale campus, focusing on Software Engineering, User Experience Design, and Data Science.

Check the Stats

#1

ASU has ranked #1 in innovation for 6 consecutive years

U.S. World & News Report

338851

Fall 2019 higher education enrollment across AZ programs

GPEC Analysis

23%

Management-level job growth (2015-2020)

Emsi 2021 Q1

Community

Experience a vibrant startup and tech community, and local government support.

Networks & Programs

#YesPHX

This 100% community-owned banner unifies Arizona’s diverse startup ecosystem.

Arizona Innovation Challenge

A business plan competition awarding $3 million annually, the largest amount for challenges of its kind in the nation.

Arizona Technology Council

The largest AZ tech trade association, with more than 800 members, offers networking, events and advocacy.

WearTech Applied Research Center

Connects weartech companies seeking novel solutions to leading university research teams and public funding.

Local Innovators

Culdesac Tempe

The nation’s first car-free neighborhood built from scratch.

Source Global

The world’s first renewable drinking water system, created from sunlight and air.

AI platform enabling organizations to plan, monitor, analyze, reduce, and report their carbon footprint.

AI platform enabling organizations to strategize, reduce and report their carbon footprint.


Download our Startup Ecosystem report for an extensive list of local innovators and community programs.

Startup Ecosystem


Government Support

Local government agencies are eager to help and willing to provide space for your success. Arizona was the first state to enact regulatory sandboxes for fintech and proptech, groundbreaking legislation encouraging financial and property technology investment. The state additionally offers a minimalist regulatory approach for all businesses, no corporate franchise tax and is constitutionally recognized as a right-to-work state. From aggressive tax credits, incentives, and programs designed to increase access to capital, the region offers a robust, pro-business climate.

Fintech Sandbox

Arizona fintech startups, entrepreneurs and established companies can develop, test, and deploy innovations without licensure or authorization for up to two years, reducing compliance costs and accelerating go-to-market strategies.

Proptech Sandbox

Local property technology companies have a unique platform to test visionary, tech-based property services and products in the Proptech Sandbox. Approved companies are able to test within the Arizona market without full licensure or other authorization.

Free Yourself from Red Tape

In addition to being a right-to-work state, cities in Greater Phoenix offer fast-track permitting – 90 days or less.

Source: GPEC MetroComp Tool; ADP

Case study with Culdesac
A rendering for Culdesac, the first car-free neighborhood

Ryan Johnson, who was on the founding team of Opendoor, has moved on to his next project: Culdesac Tempe, the first walkable, car-free neighborhood built from scratch in the United States, based in Tempe, Ariz.

The $170 million, 17-acre site will have 761 residential units, more than 16,000 square-feet of retail space and 35,000-square feet of amenities. There are currently more than 250 people on the wait list for the scheduled 2022 opening.

The Tempe City Council passed legislation specifically to support the housing complex and allow it to exist without residential parking.

Read the Case Study

California is a short flight away

Direct weekly flights from Phoenix Sky Harbor:

105

San Francisco

117

San Jose

140

Los Angeles

*Based on 2019 data

Interested in evaluating Greater Phoenix? We can help.

We can help throughout your expansion evaluation process. Our complimentary services are tailored to help you gauge whether an expansion to Greater Phoenix is right for your business. If you’ve already used our self-service data visualization tools or are ready to dive-in, we invite you to contact us for custom cost comparison and a consultation on your business needs. From there, we can help by connecting you to key local resources, provide site-selection assistance, and much more!

Choose Your Next Step

I’m still exploring.

Talent Calculator

Check out our talent calculator to explore and compare labor supply and labor costs across major U.S. metros.

Use Talent Calculator

I want industry-specific data.

Industry Analyses

Access relevant data on the software, cybersecurity, semiconductor or other industries in a 20+ page ecosystem report.

Access Industry Analyses

I need exact numbers.

Operating Cost Comparison

We offer a comprehensive comparison of fundamental operating costs, tailored to your business, at no cost.

Request Your Comparison 

I‘m ready to talk to someone.

Connect With Our Team

Our expert expansion consultants are ready to help. Chat now, send us a message or give us a call at 602.256.7700.

Call 602.256.7700