Currently set to Index
Currently set to Follow
Home » High Silicon Valley Vacancies, Yet High Real Estate Sales
United States Real Estate Investor - Real estate investing media - High Silicon Valley Vacancies, Yet High Real Estate Sales

High Silicon Valley Vacancies, Yet High Real Estate Sales

With the COVID-19 pandemic still looming over the commercial sector as a detriment and a forced industry change factor, commercial real estate sales are on an increase.

by United States Real Estate Investor
Become an AirBNB host!
United States Real Estate Investor Conference 2023
United States Real Estate Investor - Real estate investing media - High Silicon Valley Vacancies, Yet High Real Estate Sales
Play Video

United States Real Estate Investor News is sponsored by

Longhorn Investments. Real estate investing. Hard money simplified. Contact Lawrence Hopkins at 314-749-7616

Longhorn Investments. Real estate investing. Hard money simplified. Contact Lawrence Hopkins at 314-749-7616

Longhorn Investments

Need funding for your real estate investment deal? Longhorn Investments is professional, reliable, and fast!

Currently serving Texas, Tennessee, North Carolina, Missouri, Alabama, and Indiana, Longhorn Investments, LLC is a direct private lender offering short-term acquisition and renovation capital to real estate investors for both residential and commercial assets.

With Longhorn Investments, you can receive up to 75% of ARV, finance up to 100% of cost, close in 3 – 5 business days, no income requirements, a streamlined, simple approval process, and no prepayment penalty.

Formed in 2008, Longhorn Investments has funded over 4000 loans since its inception and includes complimentary businesses including a title company and real estate law practice.

Longhorn’s wealth of experience puts them in the unique position of being able to help investors throughout all aspects of each transaction.

To get started today and see why Longhorn Investments is the superior lending experience, call and speak to Lawrence Hopkins at 314-749-7616.

That’s 314-749-7616 or visit Longhorn Investments at LonghornInvestments.com.

Longhorn Investments
Hard Money Lending Simplified

United States Real Estate Investor - Mike Kitko makes millionaires happy millionaires. Live soul out!
Mark Dolfini, The Landlord Coach - Own More! Work Less!

High Silicon Valley Vacancies, Yet High Real Estate Sales

With the COVID-19 pandemic still looming over the commercial sector as a detriment and a forced industry change factor, commercial real estate sales are on an increase.

Quoting Eli Wolfe of San Jose Spotlight, “Commercial real estate sales boomed in Silicon Valley last quarter, but vacancies remain high throughout the region.

A surge in investment activity between July and September brought year-to-date aggregate commercial real estate sales in the South Bay to $6.3 billion. That’s the highest sales volume for the region since 2015, according to a new report from Joint Venture Silicon Valley’s Institute for Regional Studies.

The uptick is mainly driven by institutional investors looking for safe havens to place their dollars, said the report’s author, Ricky Manago.

“If you’re managing millions of dollars of funds in a pandemic, you want to put those funds into something that’s really reliable,” he told San José Spotlight. “What better asset to invest in than a piece of real estate that is fully leased by, say, Verizon, which leased last year with Coleman Highline?”

Manago said it’s a no-brainer to invest in commercial properties leased by tech companies because there is almost zero risk they will default on rent payments.

“In contrast, if you look at investing in multi-tenant buildings in San Francisco’s community benefit district, that’s so much riskier,” he said, noting these types of properties have higher tenant turnover and renters who may fail to pay.

Mark Ritchie, president of real estate firm Ritchie Commercial, told San José Spotlight commercial investment sales activity has been robust throughout the COVID-19 pandemic. He said the region is awash in venture capital, startups, unicorn companies and biotech.

“You look at the leases in Silicon Valley in a week, it’s what most cities hope to do in a year,” he said.

The Silicon Valley region continues to have the lowest vacancy rates for commercial real estate of any major market in the country, according to the report. The average vacancy rate for office buildings grew last quarter to about 13.3% which is up from 10.7% in the third quarter of 2020.

Manago said a handful of companies may have contributed to the small uptick in office vacancy rates last quarter, observing that NetApp moved out of its roughly 700,000 square-foot Sunnyvale campus. He noted the return of office workers looked promising this summer until the Delta variant appeared, prompting companies to extend work-from-home policies.

Derrick Seaver, president of the San Jose Chamber of Commerce, said telecommuting has continued to have a significant ripple effect on small businesses in the region.

“As folks are working from home, that requires a lot less of things like dry cleaning, or it changes their daily commute structure like where they pick up their donut and coffee on the way to work,” Seaver said.

Seaver’s organization is taking a multi-pronged approach to help businesses still struggling to recover from the pandemic. He said one major focus is looking for strategies to bring workers back to offices—a challenge that preceded the pandemic.

“Our policy committees are going to continue to look at that,” he said.

Ritchie anticipates most companies will eventually bring employees back to the office. He said the real victims of the pandemic in the commercial real estate world are older professional service firms and non-tech companies, who are already impacted by tech companies.

“It’s been brutal,” he said. “It’s that sector of the economy that’s being disrupted out of business by the giant tech companies who are everything.”

Willo Properties, The Home Purchaser
United States Real Estate Investor - Real estate investing media - David Randolph Real Estate Investment Coaching

quick content suggestions

4 Ways to Disrupt the Commercial Real-Estate Market
https://www.entrepreneur.com/article/388735

Willo Properties, The Home Purchaser
Become an AirBNB host!

United States Real Estate Investor - Real estate investing media, We're On Your Favorite Podcast App

Subscribe to our newsletter

Don't miss new updates in your email

Related Posts