If you’re looking to locate your business in California’s Silicon Valley and are feeling the pain of real estate prices, we know who you should blame.
Apple, Google and Yahoo are collectively buying-up large parcels of land in the Valley and driving up commercial real estate values in the process. Collectively, the three big tech companies spent more than half a billion dollars on land and buildings in 2006.
Google’s expansion in Mountain View, in particular, has reduced vacancy rates, in turn driving up costs.
Mountain View’s Shoreline park was one of them, according to Ellis Berns, Mountain View’s economic development manager. “After the dot-com bust, there was 28 to 30 percent vacancy,” he said. “We’re now running in the neighborhood of 8.5 percent.
Now that Google’s running out of options in Mountain View, they’re looking at options around the country.