Wednesday, May 9, 2007

Moving On

It’s time for us to look at moving offices. Our present lease ends in August and the landlord is looking to raise rents too high here, so although we are happy in this space, it’s forcing us to look elsewhere.

Rents in the South Bay are now in the $2.25 to $2.75 range (FS) for the size of office we’d be looking at. Compare that to the $1.65 we pay now and the problem is clear!

Apart from cost, the other challenge we face is that our needs are relatively modest space-wise, so we end up chasing accommodation in the most challenging segment, i.e. total space less than 6,000 square feet.

We’ve identified a couple of options in the same general area but have been a little disappointed at the unwillingness of landlords to do any sort of deal. Further proof, if any were needed, that the Valley economy has picked up strongly in the past two years.

(Stop Press: In fact, not only was one landlord unwilling to offer any deals, they just countered with the fact that they will increase rents to $3 per square foot at month end!)

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