The future of California’s commercial property market depends on Big Tech
The post-COVID policies of large technology companies will dictate the fate of California’s local commercial property market in 2021 and beyond, according to an article in the East Bay Times.
The tech industry remains the main buyer and tenant of commercial real estate in the western US state of California - a trend that began with the development of Silicon Valley soon after the Second World War.
Today, a surge in investments by newer and smaller technology start-ups promises to boost demand following the pandemic, as does the eventual recovery of the leisure and travel industries with the progress of the country’s vaccination campaign.
The biggest source of doubt for California’s commercial real estate market, however, is uncertainty around the demand for office buildings now that many companies have successfully adopted remote working strategies.
How many companies will continue with remote working once social distancing measures end is still to be known. While several firms have been able to maintain worker productivity without having to rent offices, others have had employees complain of suffering and isolation. Ultimately, the future of California’s commercial real estate market might well be decided by Big Tech’s office managers.