Tenant Reps Exec Says Tenant In Charge

SAN JOSE-The corporate real estate market has not yet bottomed out, according to the latest report by the South Bay offices of CRESA Partners, a New York-based national real estate firm specializing in corporate services and tenant representation. CRESA’s San Jose and Palo Alto offices are projecting area rents will continue to decline and vacancy rates will continue to rise through the end of 2001.

“This has been the lowest level of activity in commercial real estate since 1988, but it also is a time that presents great opportunities for savvy tenants,” Mike Michaels, a principal of CRESA Partners, tells GlobeSt.com. “Companies now have multiple options for securing space throughout Silicon Valley.”

More than 10 million sf of sublease space—the lion’s share of total available space–is now on the market in Silicon Valley, with “old economy” companies as well “new economy” startups continuing to downsize and consolidate. CRESA Partners’ clients recently involved in disposing surplus space include Yahoo!, BroadVision, Symantec, Hitachi, Nuance, Samsung, and AristaSoft.