Small is the new big in Silicon Valley commercial real estate
Friday, August 28, 2009
by San Jose Business Journal
Businesses in Silicon Valley are looking for “magic space.”
And to that end, a new theme has emerged in Silicon Valley. Small is the new big, and commercial real estate brokers are busy leasing space less than 10,000 square feet. Silicon Valley is downsizing.
For biotech companies it is defined as 5,000 to 10,000 square feet. It’s their next move from incubator status to an ability to grow, and they aren’t the only ones.
Landlords are dividing space rather than waiting for one company to take an entire floor or building. Businesses are leasing less manufacturing space as well, and the most recent statistics bare out this trend.
Coupled with the smaller theme is the continued drop in rents for commercial space and landlords easing up on leasing terms. Smaller space, lower rents and shorter leases is the new mantra in the valley, and the stories that are found in this week’s section look at what it means.
Source: http://sanjose.bizjournals.com/sanjose/stories/2009/08/31/focus8.html
