"This has been the lowest level of activity in commercial realestate since 1988, but it also is a time that presents greatopportunities for savvy tenants," Mike Michaels, a principal ofCRESA Partners, tells GlobeSt.com. "Companies now have multipleoptions for securing space throughout Silicon Valley."

More than 10 million sf of sublease space—the lion's share oftotal available space--is now on the market in Silicon Valley, with"old economy" companies as well "new economy" startups continuingto downsize and consolidate. CRESA Partners' clients recentlyinvolved in disposing surplus space include Yahoo!, BroadVision,Symantec, Hitachi, Nuance, Samsung, and AristaSoft.

Mike Michaels, a principal of CRESA Partners, tells GlobeSt.comhe expects more companies will cut jobs and push more product backonto the market. Michaels also says that theses companies are andwill be negotiating flexible leases upfront.

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