Posts

CRE 2018 Year in Review – Silicon Valley

It’s no surprise that within a 24 hour time period the Silicon Valley real estate market can make drastic changes, dancing along the price, occupancy and inventory charts – let alone an entire year. Here’s a jam-packed list of the major headlines for Commercial Real Estate pertaining to Silicon Valley, California’s technology hot spot.

  • Facebook was responsible for the largest office lease in San Francisco for 2018. The social media giant leased over 1.1 million square feet in San Francisco, making it the third-largest tech tenant in the city following Uber and Salesforce.
  • Silicon Valley made for about 21% of the nation’s new office construction.
  • A collection of major retailers went extinct leaving business owners and real estate professionals to get creative with how big box spaces will be utilized in the future. Toys ‘R Us, Kmart, Sears, Macy’s, J.C. Penney, Walgreens, GAP were among the few to officially close many, if not all existing stores in 2018 as E-commerce steals the spotlight.
  • New building designs omit concrete in the structural framework in attempts to be more eco-friendly. Imagine the structural deficiency potential there – yikes.
  • Confident foreign capital continues chasing U.S. Commercial Real Estate.
  • High tech accounted for nearly 20% of office leasing in Silicon Valley in 2018.
  • High overall mature market growth in 2018, right behind Northern Virginia.
  • Senior Housing occupancy trends plummeted as independent living occupancy rates sky rocketed. Could this correlate with medical advances and the ability for the elderly to remain independent and healthier for longer periods of time?
  • Commercial real estate prices rose across a multitude of sectors/industries by about 7% compared to the same period last year, according to Real Capital Analytics’ Commercial Price Property Index report.

As the economy strengthens and the ever-anticipated economic correction surfaces, only time will tell what lies ahead in 2019 for commercial real estate in Silicon Valley.

Broken Record Price per Sq.Ft.

Broken Record Price per sq.ft.

CSR Commercial broker the record price per square foot on North San Jose warehouse early 2017.
Steve Malech, Senior VP of CSR Commercial Real Estate, represented his client on sale of north San Jose warehouse for highest price per square foot.

 

 

Landlord’s Responsibility on Previous Tenant’s Personal Property Left Behind.

How to handle when personal property remains on the premises after a tenancy has terminated and the premises have been vacated by the tenant.

There are specific procedures and laws in place that a landlord must follow. Failure to follow the processes and procedures outlined in this article leaves the landlord vulnerable to a lawsuit by the tenant for the possessions that were left on the premises.

  • According to California Civil Code1980-1991, the landlord is required to give the previous tenant a written “Notice of Right to Reclaim Abandoned Property”.
    • This notice needs to notify the tenant that a reasonable costs of storage may be charged before the property is returned.
    • Where the property may be claimed and the date before which the claim must be made.
    • The date specified has to be not less than 15 days after the notice is personally delivered emailed, or mailed by  first-class mail and not less than 18 days after the notice is deposited in the mail.
    • The notice shall also contain ONE of the following statements:
      (1) “If you fail to reclaim the property, it will be sold at a public sale after notice of the sale has been given by publication. You have the right to bid on the property at this sale. After the property is sold and the cost of storage, advertising, and sale is deducted, the remaining money will be paid over to the county. You may claim the remaining money at any time within one year after the county receives the money.”
      (2) “Because this property is believed to be worth less than $700, it may be kept, sold, or destroyed without further notice if you fail to reclaim it within the time indicated above.”
  • If the previous tenant pays the reasonable cost of storage and takes possession of the property not later than the date specified in the notice then the landlord, at his option, can release the property.
  • If the personal property is not released and the notice stated that the items would be sold at a public sale, the landlord will release the personal property to the former tenant if he or she claims it prior to the time it is sold and pays the reasonable cost of storage, advertising, and sale incurred prior to the time the property is withdrawn from sale.
  • Please note, if the property remained in the dwelling and the former tenant reclaims the property within two days of vacating then the landlord has to release the personal property and can not require the former tenant to pay the cost of storage.

Disclaimer: This is a summary of the California Civil Code1980-1991. Please consult the code in full prior to taking any steps to remove personal possessions left by a former tenant. The full code can be found at, CIVIL CODE SECTION 1980-1991