Source: SJBJ
Saturday, April 21, 2012
Saturday Stats: San Jose Records 3rd Highest Increase in Office Rent in the US
Despite having double digit vacancies in many areas (::cough:: Downtown ::cough::), the average office rents in the San Jose area somehow still found a way to rise. They climbed a surprising 4.1%, which puts us 3rd on the list of office rent increases nationwide. We were only bested by SF (6.8%) and New York (4.8%). I'm not sure if this is a stat to be very proud of, as higher office rents will reduce demand for companies to locate here and in turn put negative pressure on the job market. However, it does show strength in the overall market, so it is at the very least a positive short term sign.
Source: SJBJ
Source: SJBJ
High office rents suggest that there is high demand for companies to set up shop in San Jose for the market benefits of being in Silicon Valley - past low rates were not the primary reason for companies to come here in the first place. So the increasing rents won't likely result in a decline in employment, but it will cause the lower profit/less successful companies to relocate. Overall, it should be good for San Jose employment and lead to pressures that will fill downtown and more spec construction. All good.
ReplyDeleteHow do you all not look at the history of business in san jose let alone the valley. Shal I site the pavilion valco the gold building the buildings within 3 blocks any direction up and down first street alone forget side streets and hi rise buildings throughout the valley LOADS of space no tenants. Build build build to what end the demand for available space is so unbalanced it boggels the mind that they don't give space away.forget the "brand/name" what nonsense that's all made up to push properties. No body moves to silly valley for the name.and with hirering being a global blood sport lets not pretend it is to hand pick employees. I could go on.Ive lived here since 1965.l am 52 yrs.old been here seen it.....just sayin
ReplyDeleteLots of sentences.
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