Silicon Valley Market Picks Up Thanks to Tech

SUNNYVALE, CA-Silicon Valley seems to be defying the national trend of the real estate markets reeling from high unemployment and thanks to its thriving tech industry, commercial real estate in the area is a proven bright spot. At least that is the consensus of recent market reports from the area. For example, a Q2 Grubb & Ellis report points out that the Silicon Valley office market continued to gain leasing momentum in Q2, largely credited to intense demand from social media, mobile computing and technology companies and as a result, net absorption had a positive increase of approximately 145,000 square feet from last quarter and over half a million square feet when compared to this time last year.

Randy Gabrielson, executive vice president of Cornish & Carey Commercial Newmark Knight Frank and manager of the company’s Palo Alto office says that “We’re seeing a high concentration of technology companies that are using Palo Alto and the downtown area for recruitment tools, which is causing a spillover effect into Sunnyvale and the surrounding areas,” he says. “This market is faring significantly better than other areas around the country, and we’re cautiously optimistic it will continue on this trend.”