Current Newsletter Feature

East Bay Tech Markets

Steve Kapp, August 1, 2002

It's been a long hot summer for East Bay technology companies. But with every change, there is opportunity, and there are some great opportunities in the market right now. Consider the following:

1. Its a tenant's market
If you are a tenant looking to lease a building right now, you are a valued commodity. With good information and representation, you will be given such favorable terms to lease space that you never would have imagined a year ago- Free rent, generous tenant improvement allowances, help with moving costs, and flexible lease term structures are just a few of the things that await the saavy tenant.

2. Is it time to buy?
It just may be. Prices are now at a low point. In Fremont, very nice industrial buildings can be had right now for as low as $125-$150.00 per square foot. Some buildings are as low as $90.00 per square foot. And with interest rates in the 6-6.5% range, this choice just keeps getting better. Consider the benefits of having a fixed monthly payment for as long as you are in the building, no neighbors to share the parking with, and the potential upside in value over time. For many companies, this is a great choice!!!

3. Renewing Your Lease? The Rental Gap Widens
Right now, there is a huge gap between asking rents on buildings and what can ultimately be negotiated On one building this year, an owner originally told one of his tenants that $2.65 per square foot was the best he could do. He ultimately wound up renewing this company for $1.00 per square foot, a 62% savings! This kind of huge savings can only be accomplished by creating attractive alternate options within the market.


For more information on any of the above, contact Steve at 510-267-6008

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