Silicon Valley Q4 2013 Market Research Report
The Valley is changing. Actually, “change” shortchanges what is happening in many of our communities. It’s more of a metamorphosis. Downtowns are vibrant once again. Whether it’s quaint Willow Glen, trendy San Carlos, or even downtown San Jose, try to find a parking spot in these neighborhoods on a Friday night. With an upbeat economy, tech workers are living the high-life, working in energized environments, and socializing just a short walk or train ride away.
Some cities that don’t have an urban vibe have decided to build one. Cupertino and Santa Clara are two such examples. Cupertino’s vision has even been coined “Main Street Cupertino.” Being developed by Peter Pau’s Sand Hill Development Company, Main Street Cupertino is already under construction and will boast 260,000 square feet of office space, 130,000 square feet of retail, a 180-room hotel, and 120 live/work rental lofts. Peter Pau was quoted as saying “It’s going to be like building a little downtown from scratch.”
Pau’s project pales in comparison to what Santa Clara has in store next to Levi’s Stadium. Related California and Lowe Enterprises are collectively planning well over 3 million square feet of new development at a total cost of roughly $2.0 billion. This is more than a new development; this is a new city within a city that will transform living, working, and shopping patterns throughout the Valley.
Along with an urbanization of communities, we are witnessing a metamorphosis of space. Already there is a clearly-established trend to go vertical. Now, we’re beginning to see neighborhoods where the existing inventory of space is transitioning. Take the area bordered by the Guadalupe River on the west, Trimble Road to the south, First Street on the east and Montague Expressway to the north. This area is comprised of 41 buildings and a base inventory of 2.7 million square feet of dated office and R&D space. Since Q3 2010, 38 of these buildings totaling 2.5 million square feet have sold. Almost all are very close to completing multi-million-dollar renovations in an effort to reposition the entire area as Silicon Valley’s new showcase for market-ready, curb appealing, available inventory.
More change will follow and that change extends to brokerage companies. New consolidations and mergers are taking place as our industry undergoes a metamorphosis of its own. Colliers has brought in entire new teams so we can be better positioned for corporate marketing and strategic planning. Change makes us all better and the metamorphosis is exciting.
To read more, download the full Q4 San Jose-Silicon Valley Quarterly Report & Forecast.