Quote:
Originally Posted by Gordo
^Just keep these notes in mind:
1. Google alone added more employees in 2012 than Facebook had total at the end of 2012. They did the same in 2011. And 2010. And 2009. And 2008.
2. Amazon, mostly through subsidiaries, has more Bay Area employees than Facebook. Microsoft has more than twice as many, with about 1000 employees in SF alone (some through Yammer).
Facebook gets a lot of press because it's something that every consumer understands and most use, but it's really a mistake to focus on them too much when talking about employment trends.
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How many of those jobs are in SF though?
Most of those employees work in Santa Clara county. If that is where more of the demand is for these types of companies, then that isn't going to increase any demand in downtown SF. Microsoft could add 100,000 employees in Santa Clara, and the vacant office market in SF would remain the same. It does, however, create stronger demand for the *housing* market in SF, since many of those employees choose to live in the city. Housing demand creates more demand for construction jobs, which could create an increase in demand in general contractors needing bigger office space and more employees. Many general contractors that build and renovate single family homes don't operate in class A office towers, however. And added residents creates more demand for retail space, restaurants, entertainment. But, again, class A office space is dependent on professional, high skilled corporations locating in downtown office centers.
I actually don't have much doubt that this will be built, and it is very encouraging that the developers want to steamroll the process. I was just point out some hypotheticals I've seen put forth by some investors worried about the possible bubble and I hope it doesn't happen.