Built To Flip Companies Upsetting Real Estate Owners
from the there-goes-another-one dept
The buzz and the venture capital money may be back in Silicon Valley, but the commercial real estate market is still struggling, apparently. While there were reports of 40% vacancy rates during the post-bubble years, office space just isn't filling up as fast as many expected. The problem? All these companies that were built to flip. They rent small offices, and then move out as soon as a big company buys them, leaving the office space vacant. The big companies, of course, have plenty of unused space in their cubicle farms, from back when they were laying off everyone, to pass over to the new startups. Every once in a while, those companies need a big new building, but it's hardly the same thing as when brand new startups with hundreds of millions of dollars in venture capital cash were growing like weeds and filling up every bit of office space available. Of course, given what many consider to be a tremendous residential housing bubble, maybe those commercial real estate owners should start offering up their office space for housing.