The average tech company in San Francisco’s Bay area spends $56 million per year to run its operations.
In Philadelphia, that expenditure is $40.5 million. Bloomberg recently published an article in which it ranked Philadelphia as the 5th least expensive city in the U.S. to live, work, and run a business.
“Even though there are higher wages [in San Francisco], the cost of living for employees is even higher,” said Kristin Sexton, CBRE’s managing director of labor analytics, in the article. “It’s a hit to both the employer and the employee. They’re paying higher wages and not getting that quality of life.”
Businesses and tech workers alike are looking at Greater Philadelphia; it was ranked a top 10 region for venture capital in the U.S. by the National Venture Capital Association in 2015.