WILDMORRE ALTY. COM W I L D M O R R E A L T Y S L U N C H, L E A R N, & N E T W O R K S E R I E S : ATLANTA S TECHNOLOGY SURGE & OVERCOMING THE TECH TALENT VOID WEDNESDAY, AUGUST 13 TH, 2014 ATLANTA PLAZA
MEET THE SPEAKERS KP Reddy Interim General Manager, Georgia Tech s Advanced Technology Development Center KP Reddy is an author, entrepreneur, second generation civil engineer, speaker and thought leader with over 25 years experience in technology and innovation for the building infrastructure industry. He is a nationallyrecognized expert on advanced construction technologies, including Building Information Modeling (BIM), Collaborative Communication, Artificial Intelligence, Semantics Database Technology, Mobile Applications and Cloud computing and is currently focused on innovation and sustainability for the Built Environment. He has held leadership positions at Gehry Technologies as Managing Director, Founder, President and CEO of RCMS (acquired by American Reprographics Company (NYSE:ARC) where he took on the role of Vice President of BIM), CIO of Verso Technologies (NASDAQ: VRSO) and Founder and CTO of Cereus Technology Partners. Currently, KP serves as the interim General Manager for Georgia Tech s ATDC. KP is a graduate of the Georgia Institute of Technology with a Bachelors of Science degree in Civil Engineering. Sarah Lodato Atlanta Campus Director, The Iron Yard Sarah Lodato is a self-professed crafty superstar, and can be spotted around town digging through piles of vintage treasures for the next DIY opportunity. Her love for all-things-atlanta has driven her deep involvement with the crafter and maker communities, a sense of togetherness she s excited to bring to The Iron Yard. She's keen on styling and graphic design, always keeping her feet on both sides of the fence when it comes to creative and technical abilities. Her passion for education will be a driving force in the direction of The Iron Yard - Atlanta, and she s excited to grow the campus into an impactful and welcoming community.
MEET THE SPEAKERS Veanne Smith Co-Founder, SolTech As Vice President and Co-Founder of SolTech, Veanne is responsible for recruiting top industry talent, leading the company s sales and marketing team, and ensuring that every client has a truly remarkable experience. Veanne's unique background combines a bachelor s degree in Computer Science with professional experience in software design and development, project and personnel management, recruiting and sales & marketing. Prior to founding SolTech, Veanne initially worked in software consulting as a consultant to The Coca-Cola Company for a major software company. Soon after, Veanne was promoted to Professional Services Manager, before moving into a marketing role where she was responsible for clients such as IBM, Coca-Cola, BellSouth and Sprint. Later in her career, Veanne played an instrumental role in opening an Atlanta business unit for a national technology firm. Veanne holds a Bachelor of Science degree from Illinois State University where she graduated Summa Cum Laude. She lives with her husband Tim and three children in Atlanta. Michael Robertson Executive Director, TAG Educational Collaborative Michael Robertson joined TAG Ed in November 2010 and serves as Executive Director. In this role, he works with TAG Member companies to support and promote Science, Technology, Engineering and Math (STEM) programs to today's students, the workforce of tomorrow. Prior to joining TAG as a fulltime staff member, Michael helped build bridges between businesses and education in a variety of volunteer roles. He has served as Chairman of the Advisory Board to GIFT (Georgia Industrial Fellowship for Teachers) Program at Georgia Tech and as a member of the Peachtree Executive Advisory Board for FIRST. Prior to this, Professionally, Robertson spent the past 16 years at EMS Technologies, Inc. where he provided strategic oversight and direction as that company grew from 400 to 2,000 employees. Michael was instrumental in shaping the company's culture and under his direction, EMS was recognized as a "Great Place to Work" and "Employer of Choice".
US TECHNOLOGY HUBS Existing Tech Hubs Emerging Tech Hub
US CORE HIGH-TECH MARKETS San Francisco Silicon Valley Growing Late Stage Contracting Puget Sound Boston, Austin Growing Early Stage Stabilizing Washington DC Pittsburgh Phoenix Las Vegas Atlanta, Raleigh-Durham Denver San Diego Los Angeles New Jersey New York City Dallas Salt Lake City Baltimore Portland Philadelphia Indianapolis Chicago Minneapolis Orange County United States (overall)
US MARKET TECHNOLOGY INDICATORS Quick Facts: US high-tech employment grew 1.5 times faster than total employment growth in 2013. The 12 core high-tech markets accounted for 50% of all US construction at 23 million square feet. New York: 9.1 million square feet under construction Boston: 4 million square feet under construction San Francisco: 2.6 million square feet under construction Silicon Valley: 1.7 million square feet under construction US high-tech services job growth outperformed total nonfarm employment growth by an average of 4:1 since January 2010. For every innovation job added, 5 additional jobs are created. High-tech services sector employment growth buoyed growth in the office-using sectors since 2010, accounting for 16.2% of all office-using jobs since that time. The US remains the dominant leader in utility patent generation, accounting for 47.8% of all utility patents worldwide. High-tech ventures accounted for more than 60.8% of total venture capital funding in 2013. High-tech ventures accounted for more than 71.5% of all first sequence (first round) funding in 2013. Technology Funding by Sub-segment 3% 2% 4% 11% 1% 22% 1% 56% Computers IT Services Networking Software Electronics Media & Entertainment Semiconductors Telecommunications
ATLANTA TECHNOLOGY MARKET 1Q2014 31,440 high-tech jobs in Atlanta $225.6 million in VC funding in 1Q2014 1,680 utility patents filed in 2013 5.5% of all US VC funding was invested in Georgia 450,000 SF of office space under construction 500,000 SF of tech tenants in the Atlanta market 14.4% total Atlanta office market vacancy 10.9% of all office jobs in Atlanta are high-tech jobs Quick Facts Atlanta is seeing a high concentration of healthcare IT and financial technology groups. Start-up incubators, accelerators, education programs, and co-working spaces are popping up across the Metro area. Some of these include: The Iron Yard Atlanta Tech Village Advanced Technology Development Center Flashpoint Founder Institute TechSquare labs Hypepotamus Alpharetta Tech Commission Emergence Georgia Medial Incubator Industrious Mobile Monday Atlanta Large companies enjoy Atlanta s employee base, which is highly-knowledgeable, diverse, and relatively affordable. All venture funding in 1Q2014 was invested in the sub-segment of Software. Companies have begun gravitating towards the spine of the city, where the majority of the fiber-rich infrastructure is located, but the largest concentration of tech companies remains in Midtown The biggest challenge in regards to high-tech companies is Landlord flexibility. Most Landlords are still seeking credit-worthy tenants and long term deals, which creates a gap for those companies in their early stages.
ATLANTA S INCUBATORS, ACCELERATORS, & CO -WORKING SPACES The Iron Yard Academy teaches intensive, three-month courses that mentor students into professional, junior-level programmers. The Iron Yard program goes beyond tactical skills and teaches students to think like a software engineer. The Iron Yard process was designed so that students remain valuable throughout their careers. The Iron Yard runs three programs a year; one program focuses on Digital Health, another program focuses on Green Tech, and the final program is centered around Tech Education. The Iron Yard offers courses in Web Design, Front End Engineering, Mobile Engineering, and Rails Engineering. Students participating in these courses are required to volunteer, teach, and run The Iron Yard s Kids programs, which are aimed at kids in elementary and middle school. The Atlanta Tech Village opened its doors in 2013 and since that time has leased space to more than 100 tech start-ups. ATV s mission is to support and inspire entrepreneurs to achieve success through a community that promotes faster connections between talent, ideas, and capital. David Cummings, founder of ATV, hopes to make Atlanta one of the top five tech start-up centers in the US and is doing so by redeveloping a 103,000 SF building in Buckhead to fit the unique set of needs presented by technology-focused start-ups. ATV offers tenants a variety of amenities, including daily panel discussions and similar events, flexible space and lease terms that allows tenants to grow and contract as they see fit, and a sense of community that boosts productivity and inspires collaboration and innovation. Flashpoint is not an incubator or an accelerator; it is a rigorous management and education program that works closely with founders to create companies. Flashpoint s goal is to help shape start-ups with true market/product fit, reduced risks, lower costs, and a better chance of high quality success. Flashpoint s program is centered around start-up engineering, a business creation and innovation process that provides companies a framework for identifying unmet demand and building companies to satisfy it. Flashpoint is focused on technology start-ups in their first four months, which they call the flashpoint phase. Those interested in becoming a part of Flashpoint should be committed full-time to their venture, have significant domain knowledge, and have relevant technical expertise. The Advanced Technology Development Center (ATDC) opened its doors in 1981 and has graduated more than 150 companies since that time. The ATDC increases an entrepreneur s likelihood of success by orchestrating connections to coaching, capital, customers, and campus resources and talent. The ATDC offers an Entrepreneur in Residence (EIR) program to select companies, who enjoy access to more than 70 different mentors. The ATDC also provides the connections and the skills necessary to secure capital, as well as opportunities to take advantage of federal funding programs. One of the biggest benefits to the ATDC is their location; their offices are housed on the Georgia Tech campus, giving companies access to some of the brightest tech talent in the country. The ATDC also offers classes, workshops, speaker series, and networking events for those involved in its programs.
ATLANTA S INCUBATORS, ACCELERATORS, & CO -WORKING SPACES Based in Silicon Valley and with chapters across 66 cities and 40 countries, the Founder Institute has helped launch over 1,230 companies, which have created more than 10,000 new jobs. The Founder Institute is the world s largest entrepreneur training and start-up launch program, helping aspiring founders across the globe, building enduring companies. The Founder Institute aims to improve the rate of start-up success by creating local start-up ecosystems that emulate the unique characteristics of Silicon Valley. In the Founder Institute s four-month, part-time program, promising start-up entrepreneurs learn by doing and launch a company through structured training courses, practical business-building assignments, and expert feedback from a large network of business mentors. Hypepotamus is a collaboration and co-working space designed to foster the local Atlanta community of innovators. Hypepotamus offers start-ups temporary work space as they expand their teams and build traction at no cost, which allows these companies to keep overhead and costs low while continuing to network with other start-ups. Hypepotamus also offers an ecommerce school, free workshops hosted twice a month that feature lessons from domain experts and are open to anyone interested. Hypepotamus also plays a major role in organizing and hosting networking and knowledge share events in the Atlanta start-up community. Alpharetta Technology Commission TechSquare Labs is a team of entrepreneurs, founders, and technologists working together to build big, meaningful, valuable companies. Since its creation, TechSquare Labs has raised over $100 million in funding for various businesses, executed 7 acquisitions, exited 4 businesses, and helped create more than 700 jobs. TechSquare Labs offers start-ups more than just capital, however; they offer help with branding and marketing, product development, team building, cultivating partnerships, and engaging customers. TechSqaure Labs take a hands on approach to defining, operating, and scaling business. As part of the city s effort to attract and retain technology companies for Alpharetta, Mayor David Belle Isle and the City Council have created the Alpharetta Technology Commission (ATC), the first organization of its kind in Georgia. The ATC s mission is to identify and pursue top investment opportunities and assist in the creation of policy to facilitate the strongest possible climate for Alpharetta technology companies. The ATC s main goals are to facilitate funding opportunities for Alpharetta s start-up companies as well as develop and maintain a 15-year strategic infrastructure and incentive plan for the attraction and retention of Alpharetta s tech companies. The ATC plans to open a 8,000 SF 9,000 SF incubator to serve select Alpharetta start-up companies.
ATLANTA S INCUB ATORS, ACCELERAT OR S, & CO - WORKING SPACES Emergence is Georgia s pre-eminent Medical Business Accelerator, enabling entrepreneurs to building successful, Georgia-based MedTech, MDDS, and HIT businesses. Emergence is an accelerator program that draws companies, mentors, expertise, and investment from the Southeast and beyond. The twelve-week Emergence business accelerator program addresses the key areas of knowledge and practice which all successful businesses need to address to be fundable in the short term, and successful over time. The Emergence program is backed by a number of early-stage medical device and HIT investors and investment firms, with a track record of investing in successful medical device, MDDS, HIT and bioscience companies. And, unlike many other programs, there is an opportunity for follow-on funding based on the success of the company through the accelerator program. Industrious is a bright, flexible new office concept for freelancers, growing start-ups, and small businesses. Industrious provides tenants with a social office, private offices for 1-10 people with plenty of common space for companies to share, socialize, and collaborate with those around them. Industrious goal is to provide the privacy needed to be productive, balanced by the access to community a company needs to stay invigorated and inspired. Fast internet, conference rooms, mail and consierge services, coffee bar and lounge, evening lectures and events, relaxation rooms, and collaboration space are all part of Industrious service offering. Industrious offers flexible lease terms, which allow companies to move in, move out, grow, and shrink as needed. MobileMonday is Silicon Valley s premiere mobile networking and authority for the mobile and connected industry. It is a grassroots, nonprofit trade organization and is an open community platform of mobile industry visionaries, developers, and influential individuals fostering brand neutral cooperation and cross-border P2P business opportunities through live networking events to demo products, share ideas and discuss trends from both local and global markets. Some of MobileMonday s community outreach initiatives include panel and keynote speeches and discussions, developer labs, networking dinners and breakfasts, and Mobile University, an all-day event focused on user acquisition, engagement, monetization, and developer tools. MobileMonday also offers online crowdfunding, mentoring, staff augmentation, and marketing services.
ATLANTA S FASTEST GROWING TECH FIRMS
WHY TECH FIRMS LOVE ATLANTA Lots of Local Talent Georgia Tech, Georgia State University, and Emory University create a strong and deep pool of young IT professionals for companies to choose from. Atlanta is the Email Marketing Capital of the World Major players like Silverpop and Mailchimp are headquartered here. ExactTarget, which purchased Pardot from Davis Cummings in 2012 for $95 million, is also relocating their headquarters to Atlanta. Abundance of Opportunity Zones Atlanta makes it easy (and attractive) to relocate your business and provides great incentives and tax breaks for creating jobs. Businesses that relocate to Opportunity Zones and hire at least two employees per year enjoy a $3,500 tax credit per employee per year. Lower Cost of Living Compared to other US cities, Atlanta has a relatively low cost of living (which is great for employers and employees alike). Residents find that they don t have to make as much money to enjoy a similar lifestyle as those living in bigger cities. Convenient Transportation Besides having the world s busiest airport (Hartsfield Jackson Atlanta International Airport), Atlanta s public transit system MARTA is key to attracting tech employees. Living in or around Atlanta makes business travel more convenient and affordable. They re Not Alone Atlanta is home to more than 250,000 IT professionals and 13,000 tech companies, including major players like Pandora, AirWatch, Square, ExactTarget, Pardot, and Search Discovery.
WILDMOR UNDERSTANDS WHAT S IMPORTANT TO TECH FIRMS Cost Whether your business is large or small, growing or contracting, well-established or just starting out, Wildmor understands that cost is one of the biggest concerns in running your company. Unlike most CRE firms, Wildmor takes the time to fully understand your needs, performs an operational cost evaluation, and provides upfront cost definition so that there are no surprises along the way. Wildmor works with local and state officials to take advantage of economic and tax incentives, and works with Landlords to secure flexible tenant improvement (TI) allowance. Infrastructure Wildmor understands the importance of being and staying connected. We have successfully negotiated the installation of dark fiber (at the sole cost of the Landlord) in multiple buildings for tenants who required such connectivity. Whether your firm requires access to power redundancy or data center space, Wildmor has the knowledge and tools to ensure your space allows to connect as efficiently as possible. Space Planning Wildmor s project management team works with space planners, architects, and interior designers to ensure your space not only meets your company s needs, but allows your employees to be as efficient and effective as possible. Your space is more than just a work area it s a recruitment tool and source of inspiration for your employees. Wildmor understands that flexibility is a huge requirement for growing tech firms and works with Landlords to ensure they can accommodate your expanding (or contracting) footprint. Location Wildmor understands how crucial location can be to the success of your firm. The location of your office space can impact many aspects of your business, including recruitment, employee turnover rate, and overall productivity. We create scattergrams and perform drive-time analyses prior to any relocation to evaluate potential commute shifts and address any employee concerns. Because Wildmor tracks all of the fastest-growing tech companies and their location, we are able to identify hot spots and centers of techrelated activity. Recruitment One of the biggest challenges facing today s tech firms is recruitment. The tech industry changes more rapidly than any other industry, and it s no secret that firms are having trouble finding the skilled labor they require to keep up with the shifting demand. Because so many companies are competing for a finite number of qualified college graduates and workers, it s important to set yourself apart from the rest and offer intriguing benefits. Whether it s providing visually-appealing space aesthetics, a live-work-play environment with an abundance of nearby amenities, or other perks like casual dress or bring your pet to work days, it s important to give candidates a reason to pick you over the others.
TECH SPACE TRENDS New spaces must address the needs of multiple generations the Baby Boomers and the Millennials. Unconventional Workspaces and Changing Workstations In order to balance the needs of multiple generations of workers, tech firms are changing their workspaces. Because Millennials generally have a lower demand for privacy, enclosed offices are now becoming open, collaborative space. Hierarchy, tenure, and seniority matter much less than they did before and spaces are no longer being designed to separate employees based on those factors. Instead, firms are creating zones and grouping employees based on their scope of work, project focus, etc. Work station walls are becoming shorter to improve employee connections, and many firms are now requesting modular workstations that can be easily rearranged as company priorities shift. Increased Density In 2001, the average square footage per employee was around 300 SF. By 2010, it was 225 SF and by 2012 it was around 176 SF; some predict this metric could go as low as 100 SF by the end of 2020. The increased density is much less about reducing footprint and much more about increasing efficiency and utilization. In the past, designers would plan 100 desks for every 90 people; with the rise of huddle rooms and telecommuting, designers now plan 100 desks for every 120-130 people. Flexibility Flexibility is becoming increasingly important in the workplace. Tech firms often reshuffle the deck to reflect new processes, product development approaches, and corporate structures. Space features like modular furniture, plug-and-play equipment, and moveable wall partitions make this type of flexibility possible. Tech firms are keeping their options open when planning their space by making private offices, conference rooms, and huddle rooms a similar size, which allows for the repurposing of space. Office Epicenter While most modern workplaces include communal areas for employees to gather, these areas are particularly crucial for tech firms, which generally require elevated amounts of collaboration amongst their staffs. It is becoming increasingly common for the office to have an epicenter, a social hub for the office. These epicenters are usually themed (a café theme is very common), incorporate outside views and natural sunlight, and are filled with tables, chairs, comfortable lounge seating, bar tables and stools, and of course, Wi-Fi. Branding the Workplace Many tech firms are incorporating their overall brand and image into the design of their space. Whether it s the incorporation of the company s logo or space accents in the company colors, tech firms are realizing how critical it is to have a space that reflects their brand. A branded interior office can reinforce corporate values and processes while also inspiring employees.
TECH SPACE TRENDS Unconventional Workspaces and Changing Workstations
TECH SPACE TRENDS Branding the Workplace
TECH SPACE TRENDS Office Epicenter
TECH SPACE TRENDS Increased Density & Flexibility
WILDMOR SERVICES Brokerage Services Real Estate Market Research Renegotiation / Restructuring Sublease / Disposition Services Merger / Integration Services Build-to-Suit / Design Services Property Acquisition / Disposition Broker Opinion of Value Developer Bidding Portfolio Management Services Real Estate Database Administration Merger / Integration Services Financial Forecasting / Reporting Lease Audits / Operating Expense Review Transaction / Disposition Management Engineering Consulting Transaction Structure Consulting Economic Incentive & Tax Strategies Multi-site Roll Out Planning M&A Evaluation Consolidation Strategies City & Regional Planning Economic Incentive Services Tax Abatements Cash Grants Training Grants Sales Tax Rebates Utility Rate Concessions Recruiting, Screening, Training Aid Fast Track Permitting Competition Analysis / Restrictions Project Management Site Assessment Design Process Management Competitive Bidding / GC & Vendor Management Scheduling & Budgeting Management of Adds / Moves / Changes Installation Oversight Lease Language Review Select Tech Clients Served
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