Commercial real estate is in high demand in the Silicon Valley. Tech companies such as Apple, Facebook and Google are expanding in the area and office space is filling up. Developers are building office and research and development structures to prepare for the expansion. Tech businesses are exploding in size and filling up available space.
New development is a term not used much in the last five years. Hopes were placed on filling up vacancies. Currently 16 companies are seeking large parcels of land and/or buildings in Mountain View and Palo Alto. According to experts in the commercial property sector of the real estate industry, if all current projects were finished there would be 2.3 million square feet of available rental space. This would hold 9,200 employees.
Google, Facebook and Apple are by no means struggling enterprises that may or may not expand. They are the technological marvels that have arrived and will remain at the forefront of industry. Of 16 additional companies actively looking for space, each one needs 100,000 square feet or more.
One leading realtor at a commercial real estate firm recently remarked about potential tenants who are looking for a large building and others that want to lease a portion of the space in one building. A commercial lease was signed recently for a large amount of office space in Sunnyvale.
Google leased four office buildings with a total of 715,500 square feet. They can accommodate up to 2,900 employees. Apple and Facebook are two other giants that will not be going away anytime soon. With large stores of cash they are helping to make the corporate world an efficient place by producing the products that are an in-demand part of life in America.
New construction is starting in the Silicon Valley and nearby areas of California. The percentage of vacancies is down. Industrial growth is on the rise and the demand for commercial real estate is an indication of a recovering economy.