Comments on: N. California Commercial Real Estate: A Bird’s Eye View http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: tammy http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229715 tammy Mon, 26 Oct 2009 22:40:03 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229715 I am suprised it is only 20%. I live in Sunnyvale, just north of San Jose and we have a 54% office vacancy rate. And they do continue to build office building even while many remain empty. What we are told in our city is business type only like A1 space. But what is interesting, is many of the open offices where A1 5 years ago. So like the every changing technology, needing to upgrade every 6 months, concrete and steel and wiring also lose their luster after a few years. When are we going to wake up and realize we are in a spiral not to the top but to the bottom. I am suprised it is only 20%. I live in Sunnyvale, just north of San Jose and we have a 54% office vacancy
rate. And they do continue to build office building even while many remain empty.

What we are told in our city is business type only like A1 space. But what is interesting, is many of the open offices where A1 5 years ago. So like the every changing technology, needing to upgrade every 6 months, concrete and steel and wiring also lose their luster after a few years.

When are we going to wake up and realize we are in a spiral not to the top but to the bottom.

]]> By: willid3 http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229619 willid3 Mon, 26 Oct 2009 18:58:51 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229619 bergsten, could it be that US CRE is all cyclical. but now we have added the new twist. business doen't need it much any more as they eliminate US jobs? bergsten, could it be that US CRE is all cyclical. but now we have added the new twist. business doen’t need it much any more as they eliminate US jobs?

]]> By: bergsten http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229602 bergsten Mon, 26 Oct 2009 18:40:57 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229602 Northern CA CRE is completely cyclical -- overbuild, stop, wait till things are WAY out of hand, repeat. "Happily," the money comes from REIT's -- the builders and trades get paid whether the buildings are leased or not. Northern CA CRE is completely cyclical — overbuild, stop, wait till things are WAY out of hand, repeat.
“Happily,” the money comes from REIT’s — the builders and trades get paid whether the buildings are leased or not.

]]> By: lalaland http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229599 lalaland Mon, 26 Oct 2009 18:38:06 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229599 can California be deflationary while the rest of us keep chins barely above water? Also, if losing virginity usually takes more than "wining" but not always.... can California be deflationary while the rest of us keep chins barely above water?

Also, if losing virginity usually takes more than “wining” but not always….

]]> By: ashpelham2 http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229595 ashpelham2 Mon, 26 Oct 2009 18:35:40 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229595 What becomes of all the empty square footage? Are these going to be one day be seen as the "ruins" of once great America? Does anyone foresee when a time will come that the space can be used again? Or, do we finally have a solution for homelessness in the USA? What becomes of all the empty square footage? Are these going to be one day be seen as the “ruins” of once great America? Does anyone foresee when a time will come that the space can be used again?

Or, do we finally have a solution for homelessness in the USA?

]]> By: willid3 http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229572 willid3 Mon, 26 Oct 2009 17:56:15 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229572 not a big surprise. before now it was the sending of as many jobs as possible out of the country. that was bound to tank CRE. now we have the ongoing job losses that will add to that trend. at what point do companies shrink their RE footprint? when they have removed 50% of their work force? or long before that? this wouldn't be just a CA issue. this would impact every state. and those dependent on property taxes will be hurt the most not a big surprise. before now it was the sending of as many jobs as possible out of the country. that was bound to tank CRE. now we have the ongoing job losses that will add to that trend. at what point do companies shrink their RE footprint? when they have removed 50% of their work force? or long before that? this wouldn’t be just a CA issue. this would impact every state. and those dependent on property taxes will be hurt the most

]]> By: Daffyorbugs http://www.ritholtz.com/blog/2009/10/n-california-commercial-real-estate-a-birds-eye-view/comment-page-1/#comment-229556 Daffyorbugs Mon, 26 Oct 2009 17:32:02 +0000 http://www.ritholtz.com/blog/?p=42247#comment-229556 Great post. Great post.

]]>