With the pandemic raging across the United States, it is unclear when employees will be able to return to their offices. This has led to a huge shift in San Francisco real estate that may have an impact on the city in the years to come.
While companies are trying to figure out what the future looks like, some of their employees have left the Bay Area, the New York Times reported. Now these companies are following.
Some of the companies that support the latest technological boom of San Francisco – including Twitter and Airbnb – trying to get out or at least substantially reduce its footprint in the city. Twitter a Dropbox tried to sublet their offices in San Francisco because they allow employees to do so work from home forever. (Facebook also provided employees with this option.)
And Pinterest paid an incredible $ 90 million to cancel a 490,000-square-foot lease at 88 Bluxome, a development project in operation.
Result: The vacancy rate of city offices in the city jumped to almost 17 percent.
In addition, rents in San Francisco fell significantly – by 27 percent compared to the same period last year – and Zillow reported more homes for sale in San Francisco than a year ago. And 90 percent of San Francisco searches were for people who moved out, the newspaper said, citing MoveBuddha.
Other states have proven to be strong candidates in Silicon Valley. Austin, Texas, has proven itself in those leaving the Bay Area; Plus, Alphabet, Amazon, Oracle and Facebook have all either expanded their tracks in the city or have plans.
Elon Musk, the founder of Tesla, also said he had moved to Texas.
[NYT] – Sasha Jones