A view of our market from the outside

| April 27, 2011 | 0 Comments

A very good snapshot of the recent upswing in the local commercial real estate market appeared the other day in the Wall Street Journal.  It may be the first press report on what we’re seeing on the street that differentiates between the market for large corporate users (and I’ve speculated previously that this market is going to get exceptionally tight this year) and the start-up driven growth we’ve seen in the past six months or so.  I was interested to see specific mention of 444 Castro St in downtown Mtn View–with a drastic drop in vacancy there heavily driven by startup activity. 

While larger users will, of course, simply be driven to modify their expectations and look at more remote locations for large expansions, it is less clear what impact will be had on start-ups.  This is a more volatile segment, and tightening markets eventually loosen (Remember the dot-com market craziness?  The assumptions made back then about the long term prospects for local commercial real estate look pretty ridiculous now).  The next 12 months should be interesting…

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