For the first time since 2007, I am beginning to see signs of cautious corporate expansion in the San Francisco East Bay, almost like watching the spring blooms begin to emerge after a long, cold winter. Professional organizations and corporations have run lean as long as possible and are now tentatively thinking about expansion... It's been seven long years and our 15 percent vacancy rate means plenty of expansion space just waiting for them.
In most cases it is modest growth, such as the CPA or financial planner who now has sufficient workload to justify adding one or two new employees, but after being lean and mean for the past seven years, has no extra space. In some cases, the firm has already experimented with having employees work from home or hired third-party workers housed elsewhere, but now needs to have these new employees in-house. Other firms may have a lease renewal coming up and are at a crossroads -- stay at the same size and not be able to grow, or take a more optimistic approach by taking on additional office space, either adjacent or through relocation.Then, the next question is how much expansion space? Unlike the tech companies that have budgets and master plans to add hundreds or even thousands of new employees, most “non-tech” companies are still stinging from the Great Recession and think in terms of cautious, conservative growth. For us in the office leasing trenches, any type of growth is a welcome relief for our past seven-year downturn!
By: Jeffrey Weil
Executive Vice President | Colliers International - Walnut Creek
Jeffrey Weil is an executive vice president for Colliers International Walnut Creek. Mr. Weil has specialized in the sale and leasing of commercial properties for 38 years and has achieved CCIM, SIOR and NACORE’s Master in Commercial Real Estate Services with Honors (MCR.h) designations.
Email Jeffrey: firstname.lastname@example.org
Follow Jeffrey on Twitter: @jeffreyweil
Follow Colliers International on Twitter: @colliersintl
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