Santa Clara County and south San Mateo County is undergoing a commercial real estate boom, with developers currently constructing or renovating approximately six million square feet of office space. Construction activity is proceeding at double the activity level of just 12 months ago.
More than a third of the new office and research space currently under development has already been taken by tech firms looking to expand. Approximately 6.2 million square feet, which would be enough for 31,000 workers is currently under construction in Santa Clara County and Menlo Park, according to Jones Lang LaSalle. Colliers International puts the figure even higher, at 6.5 million square feet.
With Silicon Valley being home to the richest pool of young tech talent in the world, it’s no wonder that companies are expanding in the area. About 4.9 million square feet of the current building activity is new office space, according to Jones Lang LaSalle. The remaining 1.3 million square feet is made up of major renovations to existing buildings. This figure includes the 500,000 square-foot complex in Mountain View occupied by Google and the 434,000 square-foot Facebook West Campus located in Menlo Park.
Tenants have already committed to lease nearly 40 per cent of the 5.7 million square feet, even before construction is completed, according to Jones Lang LaSalle. Companies currently looking for space include Google, Facebook, Amazon, LinkedIn, and Apple.
Last year, only 2.65 million square feet was being developed in Santa Clara County and Menlo Park. In 2011, the numbers were even lower, with only approximately 500,000 square feet being under construction according to JLL.
Developers are also spending tens of millions of dollars to give new life to existing buildings. Tech firms are specifically looking for attractive spaces in which to set up shop. The updated premises are necessary to help them bring in the top talent they need to stay competitive.
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