Recent headlines suggest investors are flocking to the Bay Area thanks to San Jose’s booming economy.
The tech-rich Bay Area is known for its economic resilience and ability to bounce back from tough times. In fact, according to recent headlines, investors looking to manage hefty capital gains and invest money in a community poised to improve the quality of life, invested their quarantine dollars in what they consider a region full of potential growth for Silicon Valley.
Just look at a few of the recent headlines:
- “The Bay Area is on pace to set a record for venture funding”
- “Here’s why hotel investors and developers are flocking to the South Bay this year”
- “South Bay tech companies expand office space, prepare for remote employees to return”
New office space is under development throughout the Bay Area to keep up with demand. The San Jose Business Journal reported on July 8 that a South Korean real estate investor paid $283 million to purchase a large Mountain View office building leased entirely to Google. At $1,275 per square foot, it breaks the record set by LinkedIn that was reported just six days earlier.
And citing a new repost from PitchBook Data and the National Venture Capital Association, the Silicon Valley Business Journal also reported that in the first half of this year, “Bay Area startups collectively raised $54.5 billion, according to the report. At that pace, they'll break the record total for a full-year — $66.4 billion, set in 2018 — in the middle of the current quarter… it means that 36% of all venture dollars nationwide are going to San Francisco or Silicon Valley startups.”
Furthermore, the article noted: “Some in Texas and Florida have made a lot of noise about Bay Area tech companies and startups moving to their states. But San Francisco and those same three Silicon Valley cities (Palo Alto, Mountain View and Menlo Park) each attracted more funding in the first half of this year than all of Texas, which has garnered about $4.2 billion. All of those Bay Area cities, plus San Jose and San Mateo, each took in more than Florida's $1.5 billion in the first half.”
So what does all this mean?
It means the Bay Area is still doing what it’s done for decades: Providing an environment ripe for investment and innovation. And as the latest numbers show, we haven’t lost a step.
Just a friendly reminder that the potential 10% reduction of capital gains taxes disappears on Jan. 1, 2022. Contact us today to get started.
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