Silicon Valley RE - 33 cents on $

Jim Beeger, Senior V.P at Colliers International has been working the commercial market in Silicon Valley for over 30 years. He shared the profile of the buyers, and the types of transactions that he has completed lately.

One building he purchased recently for a client that was occupied by a single tenant – Apple. Why was it so appealing to the buyer? The price and value, and the strong fundamentals in the Silicon Valley area.

Another building was purchased by Chinese investors who paid a third of the replacement value which made it a very attractive investment – in the $8,000,000 range. It was almost 90% occupied, with 13 tenants, and the buyer decided to occupy the remaining square footage.

Buyer profile? Local high net worth individuals, Developers, Pensions funds, Insurance companies who often buy quickly for cash, and then put the financing in place. Commercial real estate is looking very affordable in an economy, and location, that is attractive to both domestic and international investors.  

Facebook, Apple, Google, Twitter are driving the economy in Silicon Valley, companies are spending and hiring...Resurgence is in the air. If you have been sitting on the fence investors - it is time to consider buying! What is your strategy?