May 11, 2016
Venture capital continues strong in Silicon Valley, but for how much longer? Talk in the valley has turned increasingly gloomy amid signs that its phenomenal tech boom is reaching its limits, with office costs soaring.
Sources say office prices in downtown San Francisco have almost doubled over five years, from $36 per square foot in 2009, to $63 a square foot in 2014. Enter San Diego, where lease rates are reportedly half the cost of those in downtown San Francisco or SoMa.
According to San Diego Economic Development Corp. Manager Jesse Gipe, “It has become more and more apparent that the high cost of living and limited supply of real estate are becoming real challenges for companies in the Bay Area. San Diego is an attractive market for growth. Recently, we’ve seen this with companies like Wrike, Bizness Apps, and Experian expanding and relocating here.”