Silicon Valley is touted as hot office market: real estate report
SAN JOSE – After the coronavirus slump subsides, Silicon Valley will be the nation’s hottest ticket to future office development, according to a new report.
Defined as Santa Clara County, the San Jose subway area is considered the nation’s leading market for future office space development, as well as being an excellent market for retail and residential property development, according to a report released by CBRE. a commercial real estate company.
The East Bay and San Francisco-San Mateo metropolitan areas were also viewed as convenient locations for office, retail, and apartment development.
“Companies appreciate that a location in the San Jose area is accessible to a variety of top talent and offers room for growth,” said Mark Schmidt, senior managing director of CBRE’s Silicon Valley office.
The ranking was used to assess which of the 50 most important markets in the US offered the best development opportunities in a post-COVID era. The survey was the first such report published by CBRE.
Taking into account all property types – office, retail, multi-family, and industrial – plus all factors such as land and construction costs, Santa Clara County was ranked 17th nationwide for development opportunities, the San Francisco-San Mateo region was ranked 22nd, and the East Bay was ranked 23rd, determined by CBRE.
In the office market, however, Santa Clara County was the best region for office development opportunities according to CBRE’s Office Index.
Santa Clara County was voted # 1 out of 50 subway areas in the United States. South Bay prevailed against famous office markets like New York City and Chicago, as well as emerging corporations like Seattle and Austin, Texas.
The retail index compiled by CBRE found Santa Clara County ranked 9th out of 50 subway areas. Santa Clara County was also rated No. 20 for multi-family development opportunities.
East Bay was ranked # 16 for industrial development opportunities, # 20 for office, # 21 for retail, and # 26 for multi-family opportunities, CBRE found.
The San Francisco-San Mateo area was ranked 4th for office, 16th for apartment building development, 27th on the retail index, and 38th on the industrial section of the index, according to CBRE.
“The East Bay has benefited as a more affordable neighbor of San Francisco with industry advantages in information technology, professional business services and a sizeable construction workforce,” said CBRE in its report.
CBRE believes Silicon Valley is in a strong position to rebound once the coronavirus-triggered economic downturn ends.
“The San Jose metropolitan area is expected to have the fastest growing economy after the recession, powered by an unprecedented high-tech ecosystem that leverages research universities, abundant capital, and a strong start-up and corporate culture,” said CBRE.
According to CBRE, the coronavirus is expected to lead to changes in the development and delivery of properties to tenants across the country.
“New commercial properties require improved amenities,” said CBRE. “Developers are prioritizing new features that promote health and safety, tenant flexibility and easy access in response to COVID-related concerns.”