(Photo by Casey Kuhn - KJZZ)

AZ TechCelerator's co-work space called the Beehive.

Phoenix has a history of being affordable, both in the cost of living and in doing business.

But, while the price of leasing business space in town has been going up, it is still attractive to one particular business sector coming from across the country to locate here.

Phoenix is gaining a nationwide reputation as a technology hub, for tech start-ups here, but also for firms from across the country looking for a second location.

"We’ve seen in the last five years in some markets, rental rates increase 30-40 percent in some markets, specifically in south Scottsdale, downtown Tempe," said Matthew Coxhead, executive vice-president of commercial real-estate investment management firm JLL.

He said downtown has become the new draw for technology firms because rates are cheaper than Scottsdale and Tempe.

“Lately we’ve had a number of clients that have put a competitive analysis together between Phoenix, Salt Lake City, Denver, Austin...and we beat them," Coxhead said. He said factors include quality of employment, attractiveness to millennials, and a slightly higher than average unemployment rate.

Coxhead said rent in downtown Phoenix costs half or a third of what it costs in other U.S. markets.