Quote:
Originally Posted by clubtokyo
Growth in San Jose has to be crazy with it being close to crowded SF?
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Unfortunately when it comes to highrises the entire Bay Area has about the same construction costs, but certain areas have way higher rents than others, so developers concentrate there, and avoid places where the rents are too low.
San Jose tends to have lower rents than every other high-rise amenable area, including downtown Oakland, and office rents are way in the toilet in comparison, barely making $4.50/sqft/mo now. So work tends to be start and stop, while developers down here tend to build office buildings, like 8 story highrises in sunnyvale, the Apple spaceship, etc etc, getting higher returns. Or concentrate in SF where rents are sky high.
As for distance San Jose is actually only 5 miles closer to SF than Santa Rosa. All the demand comes from people wanting to live in Silicon Valley for jobs. Just last year some prices have gone up a lot as Google announced they are buying land.