Mark Priscaro Tweeted me to see if the fact Silicon Valley office vacancies running at 20% might pique my interest. Given I live in the middle of nowhere, Andalucia Spain, that seemed a little odd. But it’s amazing what can catch your attention. Anyhoo – the bit that DID interest me:
Asking rents rose 5.6 percent to $29.64 a square foot per year. Effective rents, what occupants actually paid, fell as landlords reduced rates by as much as 30 percent to retain tenants
A quick stab or two on the calculator demonstrated that the effective net rent is equivalent to about 5% more than I was paying for a serviced office in Little Germany, Bradford back in 1997. OK – so take service elements out and you’re probably looking at 20% differential. Even so, that’s astonishing. No wonder the Valley remains popular with entrepreneurs.
Having been to the Valley a fair few times I know which I prefer.
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