San Jose becomes a ‘city of churn’ as high-earners move in and residents look to lower-cost markets

San Jose is simultaneously one of the nation’s most sought cities by job seekers and home to the most job holders who want to leave, a dichotomy that could have profound impacts on Silicon Valley’s business future and social fabric.

That dichotomy stems from the way technology has become the foundation of the U.S. economy and Silicon Valley the capital of that industry, says the author of a recently published study by the online jobs and recruiting site Glassdoor. And it could have profound impacts on the Valley’s business future and social fabric.

“San Jose is a city of churn,” said Andrew Chamberlain, Glassdoor’s chief economist. “It’s the most dynamic of any city of the big metros we looked at” in the company’s 25-page report entitled “Metro Movers: Where are Americans moving for jobs and is it worth it?”

San Jose ranks third on the list of places — after San Francisco and New York — where U.S. job seekers in Glassdoor’s database of 668,000 job applications are applying, the report says.

But San Jose ranks behind only Providence, Rhode Island — which turns out talented college graduates much faster than it creates jobs — as home to the largest percentage (47.6 percent) of applicants seeking work elsewhere.

 

 

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Modular construction to be used in high-rise housing in Oakland

Oakland will soon have the tallest prefab modular high-rise apartment complex in the country.

RAD Urban is pushing forward with plans to build two 29-story high-rises with 200 units of housing using steel-framed modular units.

Unlike projects built with wood-framed modular units that top off at mid-rise level, projects built with steel-framed modular units can reach much higher, RAD Urban Senior Vice President, Construction and Operations Jason Laub said.

Modular isn’t new to construction and it has been around for decades, Laub said. Modular construction and other emerging construction technologies will be discussed at Bisnow’s upcoming Oakland Construction and Development Update! June 14.

The increased costs of construction has caused more people to look at modular as a solution and cost savings, Laub said.

“Developers are increasingly not able to make projects pencil,” he said. “We need to … look for creative technologies to advance the industry and lower the cost to build and deliver housing.”

Steel modular construction saves 20% on construction costs and time to completion compared to conventional stick-built construction.

Modular construction is quickly becoming an alternative to traditional construction to save time and money throughout the Bay Area.

 

 

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Exclusive: 44-story Transbay tower proposed next to transit center

Another tower could join the forest of new skyscrapers in San Francisco’s Transbay district.

New plans for a 44-story highrise at 540 Howard St. call for 149 housing units and 52,403 square feet of office space. An existing three-story building, which houses Temple Nightclub, would be demolished.

The site is next to numerous massive projects, including the $2.2 billion Salesforce (formerly Transbay) Transit Center. On a neighboring parcel, Hines and Urban Pacific Development have proposed a 60-story, 800-foot tower with housing, office and a hotel at 550 Howard St., known as Parcel F. Developer Crescent heights has approval for a 495-foot residential tower at 524 Howard St., but the project has been delayed. Rising construction costs have made towers more challenging to build.

Warner Schmalz, an architect at Ankrom Moisan, is designing the 540 Howard St. project. The firm said he wasn’t immediately available to comment. property owner Wendy Hemming couldn’t immediately be reached for comment.

It isn’t clear how tall 540 Howard St. would be, but the site is zoned for 450 feet, or less than half the height of the nearby 1,070-foot Salesforce Tower.

 

Read more from San Francisco Business Times

 

 

 

Workplace needs a place to chill, Millennials say

What is one thing millennials want in an office that their parents probably never thought of? A place to relax.

That is the conclusion of a survey conducted by U.K. office interior specialist Dale Office Interiors, which found that over a third of 18- to 34-year-olds would favor prospective employers offering “chill-out zones.”

There is no exact definition of a chill-out zone, but presumably most people know it when they experience it. Previous generations understood the concept, but few thought of the workplace as a place for chilling out. Home, certainly. A bar, maybe, for those in a certain mood. But not the office.

“People want to enjoy working, playing, essentially they want to enjoy life!” Allford Hall Monaghan Morris founding partner Simon Allford told The Architects’ Journal. “Buildings need to enable this by offering a range of different working and relaxing spaces on the micro scale of the office and on the macro scale of the building.”

Overall, what millennials want is of high interest to employers. In the U.S., Google searches for “how do millennials want to work and live?” increased from zero in 2015 to 15,900 in 2016 and 13,400 in 2017, according to Fresh Business Thinking.

 

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Google unveils broad vision for San Jose’s Diridon Station as some community members rally to halt the plans

 

Google announced nearly a year ago that it had visions of a mixed-use campus spanning up to 8 millions square feet in San Jose’s Diridon Station.

Since then, the tech giant has invested heavily in real estate in the area. Google has begun to lay out a high-level vision for San Jose’s Diridon Station area, a 240-acre swath of land around the city’s primary transit hub where the company has dreams of building a massive mixed-use campus.

But barely as Joe Van Belleghem, senior director of development for Google cleared his throat to start a presentation that would outline a framework for long corridors filled with retail, homes, art and a cluster of office buildings, more than a dozen city residents marched in, banner and signs in hand.

“OK now Google, we know you’re bad,” the protesters yelled. “Don’t need you here, we’ve got our own, turn around and go home!”

 

 

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Exclusive: East Bay shopping center lands new grocery tenant to anchor redevelopment strategy

The new owners of the regional mall have mapped out a multi-phased plan to redevelop the East Bay property into a shopping and entertainment geared toward the region’s strong Asian demographic.

LBG Funds has finalized a 35,000-square-foot lease with Taiwanese grocer 99 Ranch Market to anchor the first of four phases that the Los-Angeles-based investor is planning for the once-struggling Richmond property.

Rebranded as the Shops at Hilltop, the first phase will also include leases for 55,000 square feet of restaurant space; new tenants for a 20,000-square-foot food hall and 12,000-square-foot food court; as well as a variety of incoming shops, entertainment and pop-up uses.

LBG is estimating work on the first retail phase will be completed in mid-2019.

 

 

Read more from San Francisco Business Times

 

 

 

Bitcoin won’t encourage cryptocurrency for real estate, but cryptoeconomics will

As Bitcoin enters the mainstream economy, a number of homebuyers and sellers are starting to use the cryptocurrency to conduct real estate transactions.   

Last year, Southeby’s International Realty sold one of the first single-family homes in Austin, Texas using Bitcoin. The Austin home was sold when Bitcoin prices were $3,429 in September 2017.

In addition to these transactions, other residential real estate properties are being listed for Bitcoin. A recent Forbes article describes how Canter Companies, a full-service investment firm specializing in real estate and asset management projects, recently listed two multi-million dollar homes for sale in Bitcoin. The homes are collectively priced at under $20 million in Bitcoin. And recently, a 27 acre piece of land in Silicon Valley has been listed for sale in Bitcoin, Ether and XRP with a starting price of $16 million.

However, while there are a handful of homes currently listed for sale in Bitcoin, some believe that using Bitcoin for real estate transactions will not result in widespread adoption — At least not until the real estate industry starts to utilize blockchain technology, which in turn will drive the adoption of cryptocurrency transactions.

While Bitcoin is stepping into society’s massive adoption as a decentralized cryptocurrency, the next-generation blockchain technology  brings a lot more to the real estate world than just a payment alternative. For example, Propy is based on the Ethereum blockchain, an enormously powerful shared global infrastructure that can move value around, while also representing the ownership of property. Ultimately, this enables title deed transfers to take place entirely online. Imagine a world where you can buy or sell your property while sitting on your couch – now this is a reality with blockchain technology, Natalia Karayaneva, CEO of Propy, told me.

According to Karayaneva, the only way to encourage homebuyers and sellers to take advantage of cryptocurrency for real estate transactions is to take a “cryptoeconomics” approach, which goes much further than simply putting homes up for sale in Bitcoin.

Cryptoeconomics lays out the framework for the way in which cryptocurrency ecosystems thrive and function across a decentralized network, known as the blockchain. These ecosystems are able to allow a number of entities who do not know one another to reliably reach consensus across an anonymous, trustworthy network through the use of cryptocurrencies. This is achieved by using a combination of economic incentives and basic cryptographic tools.

 

 

Read more from Forbes

 

 

 

Facebook’s building permits soar past $1B in its hometown of Menlo Park

Facebook may be rapidly expanding its footprint across the Bay Area, but a new report shows the social media giant is still highly focused on — and invested in — its hometown of Menlo Park.

In recent years, Facebook has filed building permits valued at more than $1 billion in the small Peninsula city, according to an analysis by Kelsey Graeber of BuildZoom, a San Francisco-based startup that tracks building permits to connect property owners with contractors.

“Menlo Park has been our home since 2011 and we’ll continue to be a responsible corporate citizen as we grow in this community,” John Tenanes, the company’s vice president of global facilities and real estate told Silicon Valley Business Journal in a statement on Tuesday.

Facebook declined to confirm specific dollar amounts for the campus, often referred to as its “West Campus,” and it’s worth noting that building permits are not an exact science.

The values on the publicly available permits are companies’ best estimate early on of what a given project will cost, and often fall below what is actually spent on a building. The permits generally do not include costs for items like small change orders, furniture or some fixtures for instance.

 

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Oakland, A’s begin Coliseum ballpark negotiations

The Oakland A’s now have the blessing to study both the Coliseum and Howard Terminal in their quest to build a new ballpark in Oakland.

The Oakland City Council on Tuesday night approved an “exclusive negotiating agreement” with the A’s, allowing the two to begin talks about constructing a ballpark at the Coliseum, the MLB team’s home for 50 years.

In vote taken just before midnight, the council entered into an agreement to negotiate with the A’s over the next nine months, while President Dave Kaval studies if the 112-acre East Oakland site is the right fit. The city can extend the negotiations for an additional three months.

“This decision about a new privately-financed ballpark is a really important moment not only for the A’s but our community,” Kaval told council. “We look forward to working together not only this year but for many years to come.”

Last month, the A’s and the Port of Oakland agreed to study Howard Terminal, located near Jack London Square and the estuary. Kaval has called the study of two sites “parallel paths” to keep the team in Oakland.

Though an aging complex, the Coliseum has had some bites from developers lately. Walnut Creek developer Mark Hall approached the city to build a 15,000-18,000 seat soccer stadium for a United Soccer League franchise. The city said another person proposed to build a corporate campus at the Coliseum.

While Howard Terminal needs environmental review and has access issues, an environmental review for the Coliseum is already completed. It’s also favored for its proximity to BART, Interstate 880 and the Oakland International Airport.

 

 

Read more from East Bay Times

 

 

Exclusive: $75 million renovation, office conversion proposed at San Francisco’s biggest shopping mall

Westfield San Francisco Centre, the city’s largest shopping center, could see a $75 million makeover and partial office space conversion. 

Mall landlords Westfield Corp. and Forest City Realty Trust Inc. proposed this week a renovation of tenant spaces, a new facade with more glass, and three new outdoor terraces for the 865 Market St. portion of the property. The companies also want to convert existing retail, storage and meeting space into 49,999 square feet of office space on the seventh and eighth floors. The proposal requires approval from the City Planning Commission.

Numerous retail spaces in the Bay Area and elsewhere are seeking to convert to office amid turmoil in the shopping sector.

 

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