Categorized | Commercial

Commercial Real Estate in Silicon Valley Remains Strong

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The commercial real estate market in Silicon Valley showed significant growth in 2011, and is expected to continue as such into 2012. As hiring in the tech market continues to rebound, and the industry grows stronger, the market in Silicon Valley will thrive.

The increase in hiring means that many of the tech companies are looking to expand. As such, commercial real estate demand is surging in the area. Nearly every tech company in Silicon Valley is looking for more space, thus heavily increasing tenant demand in the region.

Analysts indicate that commercial tenants are looking for nearly ten million square feet of space to be used as both offices and research space. When adding in surrounding cities and towns, that number increases to nearly sixteen million square feet.

Although a great deal of property is in demand, the reality is that only sixty-five to seventy percent of the property in demand will be leased. Companies often decide to remain in the current lease when it comes time for renewal. Even if only two-thirds of the commercial property in demand gets leased, the Silicon Valley commercial real estate market continues to look incredibly strong.

When looking at the results of last year, and the expectations of the current year, the commercial real estate market in Silicon Valley is the strongest that it has been in years. The area’s success will likely have a positive impact on the residential real estate market in all surround areas as well, further boosting the outlook for the region.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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