Silicon Valley’s New Transportation Initiatives Boost Confidence in Their Office Market
Google, Meta (formerly Facebook) and Apple are expanding their Silicon Valley facilities according to city officials and real estate brokers familiar with the area. But they are not the only ones. Three developers are currently working on office developments in San Jose, California, despite the fact that no leases have been signed in advance. So what exactly causes this? Many companies have, albeit reluctantly, accepted that workers will continue to work remotely in one form or another, and developers in other major cities are eagerly awaiting to see how hybrid working trends will affect labor markets. long-term offices. Why are Silicon Valley developers the only ones announcing big office developments? It’s because the cities of Silicon Valley are finally invest more in public transport.
Many new developments are happening in the Silicon Valley public transportation sector. California’s Caltrain commuter rail is well on its way to replacing its diesel-powered trains with electric ones. BART, often known as the Bay Area Rapid Transit system, will extend its line from Santa Clara to San Jose. Finally, San Jose city officials will select a transportation provider later this year to build a new transit line. But to connect Diridon Station in San Jose to San Jose International Airport, it would have to pass through or near Google’s new site, where Google plans to build 7.3 million square feet of new office space, as well as a a center community, 15 acres of parkland and 4,000 new residences. Many companies have since expressed interest in operating on the new route, including tunneling company Elon Musk’s Boring Co.
Aversion to long commutes is often cited by office workers as the main reason they don’t want to return to full-time in-person work, so it’s no wonder new transport hubs are causing a boom office expansion in Silicon Valley. Perhaps cities with low office return rates may want to take note.