New York City moved up one spot to #3 on CBRE’s Tech Talent Scorecard, part of the firm’s fifth annual Scoring Tech Talent Report, which ranks 50 U.S. and Canadian markets according to their ability to attract and grow tech talent. The rankings for the Tech Talent Scorecard are determined based on 13 unique metrics including tech talent supply, growth, concentration, cost, completed tech degrees, industry outlook for job growth and market outlook for both office and apartment rent cost growth.

New York City also ranked second for tech talent labor pool among large tech talent markets. The San Francisco Bay Area is the largest tech talent market.

The New York Metro Area ranked #1 among regions for tech degree completions, with more than 60,000 from 2011-2015. Seventy-four thousand tech jobs were added in the New York Metro Area from 2012-2016, for a “brain gain” of approximately 13,500, demonstrating the market’s strength as a tech job creator and tech talent attractor.

The report finds that strong demand for talent that offer specific skills, such as software development, coupled with a tight labor supply, is driving companies to locate in markets with the largest concentrations of high quality talent. And while value is a key driver when it comes to choosing an office location, companies are showing that they are willing to pay a premium to access the highest quality tech talent.

“Since the cost of talent is the largest expense for most firms, the quality of that tech talent is becoming of their most important considerations. The skills of the available labor pool do not appear to align with available jobs, causing a structural impediment to growth for companies across North America,” said Colin Yasukochi, director of research and analysis for CBRE and the report’s author.

“New York is clearly the pre-eminent city on the east coast for tech talent,” said Sacha Zarba, EVP of CBRE’s Technology & Media Practice Group, “and its appeal keeps growing. From co-working space for start-ups, to office space for growing and established firms—whether in new construction or repositioned office stock across the three Manhattan markets, or in Brooklyn’s maturing office market—New York City serves evolving needs of this very talented segment.”

To view the full report, please visit click here.

To view individual markets statistics and rankings, including rankings on the Scorecard, click to access the Tech Talent Analyzer.