It Didn’t Take Long...

by Erik Hayden, on Jul 16, 2021 10:33:43 AM

DTSJ-Aerial

Moody’s, Bloomberg and CBRE nailed it when they predicted the San Jose area would bounce back quickly following the pandemic.

A quick recap of predictions. Last year:

  • Bloomberg’s analysis of 100 U.S. metro areas named San Jose the No. 1 region in the USA poised to recover quickly. The study looked at economic infrastructure, demographics and access to health care. Bloomberg attributed strong human capital, a highly educated labor force, and lower consumer debt to the high ranking of San Jose.
  • Moody’s analyzed 100 metro areas and ranked San Jose in its report of top 10 cities most likely to bounce back quickly. Researchers compared population density against the number of jobs and education level.

And back in February, CBRE’s U.S. Development Opportunity Index reported that San Jose offers the most favorable market for office construction in the U.S.

Fast forward to July 2021 and the news is filled with anecdotal evidence underscoring the resilience of the Bay Area:

  • The San Jose City Council voted unanimously in favor of Google’s historic Downtown West project, an 80-acre village with blocks of new housing units, office buildings, retail and parks.
  • Apple struck a deal to lease 701,000 square feet in a half-dozen large office buildings in Sunnyvale.
  • An investment firm out of South Korea paid $283 million to buy a new Mountain View building leased to Google.
  • LinkedIn purchased its global headquarters in Sunnyvale for $323 million.
  • The Silicon Valley Business Journal reported that the Bay Area is the top destination this summer as business travel rebounds
  • Costar reported that the “accelerating corporate investment in regional real estate suggests that Silicon Valley's office market is on the mend from the devastating economic impact of the dual health and financial crises.”

This rebound aligns with San Jose’s long-term commitment to strengthening its economy. The Bay Area is home to the largest tech companies and a concentration of top talent from around the world. And it is home to institutions like Stanford, UC Berkeley and San Jose State University, which are constantly churning out engineers. Meanwhile, a new report from PitchBook Data and the National Venture Capital Association says Bay Area startups have collectively raised $54.5 billion this year, on pace to easily break the $66.4 billion record set in 2018.

Interested in being a part of this exciting development? Contact us today.

 

 

 

 

 

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Topics:Opportunity ZonesSan JoseSilicon Valleyoffice