Monday Market Update: Silicon Valley In The News
Development deals are abound even though the market is changing; see 3 headlines here!
Silicon Valley real estate has changed but it absolutely has not stopped. While many news stories have focused on the changing priorities of many individuals and families in a post-pandemic cycle, the ‘tech exodus’ too often implies that everyone is leaving and no is coming. However, the opposite is true; CBRE reported that in the last 3 quarters of 2021, the tech industry leased 76% more office space than it did a year earlier. The Bay Area News Group reported earlier this year that LinkedIn, Tesla, Google, Apple, Amazon and Meta have all completed major lease deals on property purchases in Silicon Valley.
That trend continues as we just pulled 3 more headlines for you that reveal even more local development in the works. Here are the highlights; titles linked to full articles.
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‘With 15,000 Homes In The Pipeline, Google And Lendlease Want To Reinvent Silicon Valley Housing’
FAST COMPANY
Summary: “Google, in partnership with global development giant Lendlease, is using land it owns throughout Silicon Valley to develop roughly 15,000 units of affordable, mixed-income, and market-rate housing over the next 15 years.”
‘Apple Deepens Silicon Valley Presence With Sunnyvale Real Estate Deal’
SILICONVALLEY.COM
Summary: “Apple has deepened its presence in Silicon Valley with a deal to buy a Sunnyvale office and research building in a real estate hot spot. The tech titan paid $46.5 million to purchase an office building on Potrero Drive, according to documents filed on Sept. 14 with the Santa Clara County Recorder’s Office. Apple’s deal to buy the building runs counter to a narrative that tech companies have launched a wide-ranging exodus from Silicon Valley amid concerns about the region’s brutal cost of living.”
‘Big Santa Clara Office Building Near Great America Lands Buyer’
MERCURY NEWS
Summary: “A big office and research building in Santa Clara near the Great America amusement park has been bought by a construction company in a sign of ongoing investor interest in Silicon Valley commercial sites. The new owner couldn’t immediately be reached for comment to discuss plans for the property. What is clear, however, is that the building is located in an area that is poised to experience a considerable amount of commercial property redevelopment.”
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The bottom line is that development is far from done here in Silicon Valley. While our population continues to grow and change, there is no doubt a notable number of individuals who want to live in the Bay Area but are facing supply constraints. Fast Company reports “…it’s become politically prudent to couple office growth with home development.” As such, the redevelopment and addition of commercial buildings must be balanced with the housing types, lifestyles and experiences that potential employees are seeking.
Bobbi Decker
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Broker Associate, Bobbi Decker & Associates
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