With Google’s announcement of a planned new campus in San Jose, California, investment property managers are cautiously optimistic about the opportunities that may soon become available. The plan is for Google to build an impressive eight-million square foot campus, which is about eight times as much as the office space currently available in San Jose. The transaction is not yet finalized because there are many details to be ironed out due to the sheer magnitude of the project. The entire downtown core of San Jose will be revitalized and expanded to reach levels that were never previously imagined. Small investors should be proactive and start to search out deal and be ready to make a move if you truly want to benefit from this large-scale development project. If nothing else, start with investigation and due diligence of any and all properties surrounding the proposed project – your real estate education IQ could be improved just by this step alone.
Google Is Investing in San Jose Neighborhoods
San Jose, California is the 10th largest city in the United States, has one of the most educated and wealthiest populations for large cities, and is the Capital City of Silicon Valley. Google, like many other large tech players like Adobe, Apple, and Oracle call San Jose one of their homes. Major companies today make a big investment into the neighborhoods they operate in. The plan is for the San Jose campus to be open and welcoming for the community, unlike many major corporate campuses. Thousands of jobs will be created, which means rental property managers in Silicon Valley will be busy setting up tenants with housing. In a city where the median single-family home is currently selling for $1 million or more, investment property managers must feel good about their rental properties as Google’s plans move toward being finalized.
As with any major project, there will be complications and concerns to address. One of the main ones is housing. If Google is bringing 20,000 jobs to San Jose, there simply aren’t enough houses available for those employees to live. There are multiple plans for rental property housing stock projects. Since many rental properties in surrounding Silicon Valley cities could take several years to build, construction companies are literally on standby waiting for the agreement to take place. Another complication is that the boom of building apartment complexes and rental properties will add to the labor shortage. The cost of building these housing units will be expensive but well worth it in the end when you consider the types of jobs created and the impact Google will have on San Jose and surrounding communities.
Rental property managers in Silicon Valley could be getting the break they’ve been waiting for. Many of the 20,000 jobs Google is bringing will be high-paying tech jobs so the employees should be able to afford housing in the area. Property owners and investment property managers with properties in the area will surely reap the benefits. However, new investors may experience some challenges with the expected rise in housing costs. Not only will the core of San Jose be impacted, but the outskirts will see many housing units develop as well. Google’s expansion into San Jose will be massive, but it’s entirely possible it won’t be the only new development in the coming years.
Silicon Valley Property Management Group can help investment property managers plan ahead for Google’s expected move into San Jose. There may never be a better opportunity for rental property managers so making sure your investment is managed properly is critical. Our team is ready to work through all the details to not only protect your property, but also maximize your ROI. Contact us to see how we can prepare you for this massive development.
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