SAN JOSE, CA-The stock market may be inching upward, but the economy has not yet hit bottom, according to a second quarter market report by CRESA Partners San Jose, a corporate real estate advisory specializing in tenant representation.

Company Principal Scott Kinder says that even when the recession can be declared officially over, it will take the commercial real estate market in Silicon Valley and the Bay Area at least another six months to begin its recovery. “And when the recovery begins, it will likely be painstakingly slow since there is so much space to be absorbed,” he adds.

As it stands, space continues to be added to the supply of office, R&D, and warehouse sectors due to continued consolidation and mergers in the Valley and the Bay Area, says Kinder. “It’s gotten to the point that some large, short-term subleases (12-18 months) are now being offered for free (operating expenses only),” he says.

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