SAN FRANCISCO—Recently, we have had many discussions over the difference between the tech companies taking space in downtown San Francisco and the huge campuses that are being built in the Silicon Valley and whether or not those campuses would take activity away from the City. According to new data from JLL, tech companies still see the need for Silicon Valley presence.
The firm’s research manager Amber Schiada, says that there is approximately 50,000 square feet of tenant space requirements from San Francisco-based tech companies looking to open a Silicon Valley satellite office.
In fact, she says that the combined amount of tenant transactions that involved the establishment of a satellite office in Silicon Valley is 375,000 square feet over the past 18 months—62% of that, she says, was brand new construction.
“Nearly all of the outpost locations were established to tap into the Valley’s local talent pool,” she explains. “Square recently leased space in Santa Clara that can accommodate approximately 50 engineers and designers.”
GlobeSt.com caught up with Mark Gedymin, senior advisor at TRI Commercial/CORFAC International to learn more about San Francisco versus Silicon Valley. Generally speaking, he agrees with JLL that the big players want to be in both markets.
“It has been well documented that Silicon Valley firms have opened numerous satellite offices in San Francisco. Google, Yahoo, Microsoft and others all have a major presence in the city now,” he explains. “And Google recently acquired a robotics company on Potrero Avenue, which is a client of mine, and further expanded their footprint in San Francisco.”
While engineers and programmers are frequently cited as reasons to have a presence in San Francisco, he continues, “a lot of people forget that many highly qualified executives want to work and even live in the city, versus the valley.”
GlobeSt.com recently had an exclusive chat with Markus Shayeb, SVP of tenant advisory at Transwestern‘s San Francisco Bay Area office on the trend of tech companies moving to San Francisco. According to Shayeb, as with all office-space needs, the difference is employee-driven: Where do they need their talent to work?
“It’s a difference of size and youthfulness,” he previously told GlobeSt.com. “There are older, mostly larger firms whose clients are all around the world and don’t need their employees to be in San Francisco to service customers in India. There is also the generational issue: If you’re a more established company such as Hewlett-Packard, a large share of your employees can live and work in the suburbs.”
Keep an eye out for the June issue of Real Estate Forum, where we have a detailed feature on the tech tenant and their space needs.