I'm not going to go into too deep of an analysis here.... I caught a clip of "Who Wants to be a Millionaire" today. One of the questions was: Which internet giant has a CEO who is 24 years old? A. My Space B. Facebook C. ______ and D. _____ (the last two I can't remember) Answer is B - Facebook - final answer.
Facebook is yet one more internet giant created in our backyard - well actually at Stanford - same difference! The vibrancy of this area continues and will continue for a very long time. Has this affected real estate values - definitely. In fact Palo Alto is UP this year something in the range of 5%.
Google waited forever to go public - a wait lengthened by the Dot Com bust. Facebook probably will do the same - for the better. And as more and more of my 40 year old friends finally fall to the lure of sharing their college and high school pictures with friends they haven't seen in decades, the more valuable will be the FB shares - and the homes in Palo Alto.... OK I know... it's late and I rambled again. Signing off.
(By the way, scroll down to my Facebook button and friend me)
3 comments:
Of course FB shares will became more valuable but it's the result accession of people to social networks. And I couldn't see logical connection between FB and real estate prises of Palo Alto. I think that prises are composed by supply and demand on that real estate market.
Dear Mr. Hunter - I know - not your real name:-)
Supply and demand for sure is relevant with pricing of anything, real estate for sure. What also is a major factor especially in the south Peninsula is the concentration of wealth in the area. Stanford land was not any more expensive 100 years ago than say Santa Cruz lands. The school brought creative people, they made money and wanted to buy homes in the area. This trend continues and paying $700-$1,000 per square foot for a house that costs the same to build as a $200 per square foot house elsewhere is directly related to the concentration of wealth in the area (which of couse super-fuels damand).
Dear Mario, thank you for your answer. I agree with you that Stanford brought creative people, they made money and wanted to buy homes in the area. Also a number of Silicon Valley high-technology companies have a influence on the real estate prise range in Palo Alto area. But why is your friends fall to the lure of sharing their college and high school pictures? I think they want to communicate with old friends like many people all over the world...but aren't to find new home in Stanford land . May be FB is lure of great business companies but it's a really nice way to increase land prises :)
Post a Comment