Demand for Office Space Goes Through the Roof in Silicon Valley
SAN JOSE (CBS SF) - Despite the continued sluggish economy, 2011 will actually go down in the record books as one of the biggest years ever for commercial leasing in Silicon Valley.
Fifteen million sq. ft. of office space has been leased in the region this year. Demand for office space seems to be driven by tech sector hiring.
"It's a leasing boom," summed up Mark Ritchie, president of Ritchie Commercial Real Estate. "In mid-peninsula to northern Silicon Valley, I mean to be very specific about that, I mean Palo Alto has consumed Mountain View, which swallowed Sunnyvale. Cupertino has been eaten by Apple so it leaves Santa Clara and San Jose."
He believes, for tech companies, it's all about having a Silicon Valley location.
"There are certain aspects of technology and innovation employment that almost require that you be in the Bay Area, particularly up and down the peninsula, to attract talent, to also be in the place where people want to live," he opined.
KCBS' Mike Colgan Reports:
Silicon Valley rent and occupancy, according to Ritchie, are both expected to increase in 2012.
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