Office space in Silicon Valley is being snapped up, so is retail space. Some of it due to actual need for space, but most for future need & concern over others taking space and a looming space shortage.
Not so long ago (think Dot Com boom), companies were out of luck when looking for work space for their expansions. We were converting industrial warehouses into cube farms to make room. With the large leases of Facebook, Google, Apple and others - the rest of the valley is getting concerned that space may not be so readily available when the next tech wave hits. Already, we are seeing rents rise in compensation to leases being signed.
It's not an issue of whether $1.50 per foot office space is reasonable today, the real question is do you want to pay $2.50 per foot a few years from now - if that is even available.
Our office is located in Cupertino and the Apple expansion is very evident with them taking space in many of the Class A & B buildings in the city. In our building, LAB 126 (Amazon) who designs the Kindle is in full expansion mode. The center of Silicon Valley is where everyone wants to be and needs to be. So be prepared to compete for space in the heart of it all the innovation.
