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Why WeWork is giving away free office space in S.F. and 10 other cities

After more than tripling its Bay Area footprint last year, WeWork is now ramping up its philanthropic efforts.

The co-working startup is providing free office space for 10 entrepreneurs who are military veterans for six months in San Francisco and 10 other cities. The program, Veterans in Residence, is a partnership with BUnker Labs, a Chicago-based nonprofit incubator for veterans. It’s the first time WeWork has provided free space in multiple cities through a national program.

In WeWork’s 25 Taylor St. office in the Tenderloin, a 10-seat office that is normally priced at $5,800 per month is now operated by Bunker Labs. In the country’s most expensive office market, it’s a rare offering of new, free space.

Finding affordable office space is “incredibly expensive. It’s time-consuming. It’s difficult,” said Mike Nemke, a former member of the U.S. Army Special Forces who served in the Middle East and joined the veterans program. Nemke is co-founder of a data science startup, Datamyne.ai, and MKTR.ai, which provides marketing and consulting to other startups.

Read more from San Francisco Business Times

 

 

Investors are spending big bucks for a piece of Silicon Valley office

It is already proving to be an active year for Silicon Valley office.

In the last few months, investors have spent millions to expand their Silicon Valley office portfolios.

San Jose’s office market, which has been relatively slow in recent years, picked up following Google’s plans to build a massive campus near Diridon Station. The Peninsula, which includes Palo Alto and Menlo Park, also has seen additional activity.

Santa Clara County office vacancies were about 12% in 2017 and the likes of Google, Apple and Facebook continue to buy or lease office space around the county, according to The Mercury News. Adobe Systems bought a parcel at 333 West San Fernando for $68M in January and plans to build a fourth office tower. Google continues its buying spree as it prepares for its Diridon Station campus and early this year bought three North San Jose office buildings at Midpoint@237, a business park developed by Trammell Crow, for over $117M.

Investors are expanding their San Jose office portfolios as well. DivcoWest bought three buildings from Cisco Systems in North San Jose in January, according to the Silicon Valley Business Journal. The $50M sale was for the buildings at 10 and 80 West Tasman Drive and 125 Rio Robles Drive, totaling over 313K SF.

Read more from Bisnow

 

 

 

Small tech companies finding niche in San Francisco office

Large blocks of space are in high demand among Bay Area tech companies expanding into and within San Francisco.

However, startups and small tech companies from outside of the Bay Area are carving a niche within the city as well. Some are taking advantage of leasing smaller office blocks or moving into co-working space as an entry into the city’s office industry.

“San Francisco continues to attract startups that are in hyper-growth mode,” Kilroy Realty Senior Vice President, Asset Management Rick Buziak said in a press release.

Tel Aviv-based AppsFlyer opened an 11K SF U.S. headquarters in mid-February at Kilroy Realty’s 100 First St., where Okta signed a 207K SF lease in December. The South of Market office offers capacity for further growth. The mobile attribution and marketing analytics company recently secured $56M in Series C financing. The office on the 25th floor offers an open-office plan.

Read more from Bisnow

 

 

 

Google, Facebook push back on housing, transit crisis

As the Bay Area’s housing and transportation crisis deepens, a few of the region’s biggest tech employers are taking matters into their own hands.

Menlo Park-based Facebook and Mountain View-based Google are starting to address the region’s foremost issues in housing and traffic. The two tech giants have committed to supporting or building permanent housing in their hometowns – a first in the region – each drawing up or promising master plans that would create new apartments and retail close to thousands of jobs.

Read more from San Francisco Business Times

Economy Watch: Bioscience Firms Will Pay Premiums for Prime Space

Life sciences employers are willing to pay high rents to be near hard-to-find talent. With laboratory space being scarce and rents continuing to rise, firms are facing the pressure to make their spaces desirable while keeping costs under control.

Read more from Commercial Property Executive

Where are the Offices: Do Tenants Prefer the City or the Suburbs?

It’s been an ongoing debate as to whether tenants are favoring the suburbs over the city. As we see more office campuses such as Toyota and Liberty Mutual pop up in suburban areas, the favorability of suburban markets is making headway when compared to the city. So, where are the offices?

Read more from NAI Global

Tenants Filling Up Offices In Urban Cores, Turning Away From Suburban Campuses

Suburban-urban cores chock full of amenities are proving to be popular among tenants and leasing up quickly along the West Coast.

Meanwhile, suburban offices with expansive campuses are struggling to gain tenants, especially in the Bay Area.

Read more from Bisnow

A Simple Way to Implement New Technology in Old Properties

With tenants typically only occupying office buildings during the day, a case could be made that it’s a waste of space and energy for buildings to sit empty after quitting time while landlords continue paying operating costs 24/7.

Read more from VTS Hightower Blog