In their newest study, "The Tech Slowdown: Implications for the Bay Area Office Market," authors Kenneth Rosen and Amanda Howard reviewed more than 800 leases and examined companies representing 45,000 workers and 16 million sf of space. The duo finds that web firms account for more than 50 percent of the leases signed in the Bay Area during the past 18 months, including Silicon Valley.
The report also says that Internet layoffs – at 7.1% this year – could cause rents to descend 35 to 40%, or $52 per sf in San Francisco and $32 per sf in Silicon Valley by 2005. In the study, Rosen - a professor at the Haas School of Business at the University of California at Berkeley - says the Bay Area is more supply constrained and therefore would be more able to withstand a slowdown in employee growth compared to the 1980s.
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