August 30, 2011

Silicon Valley is hot—it just posted 933k SF of net absorption—the most since Q1 ’07, Studley's managing director Ham Southworth told us yesterday. The Valley’s absorbing space at a pace that’s unmatched “virtually anywhere in the country.” The quarter’s biggest transaction: VMWare, a cloud-computing software and services firm, assumed the ground lease on Roche’s former 1M SF facility at Stanford Research Park. That’s on top of Google leasing nearly 600k SF in Mountain View in Q1. Now developers are starting to think about new projects. And fundamentals are strong, but there’ll always be winners and losers in this market. “You’re a winner if you lease to the next Google, and you’re a loser if you lease to a company that goes belly-up.”

Link to article