Key Factors

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

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

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.

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

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

Community

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

Networks & Programs

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.