In a sign that business conditions remain bad for many in Silicon Valley, the San Jose Mercury News reported recently that around 20% of all commercial office space in the Valley stood empty at the end of 2009 - and that experts believe office vacancies will only rise in 2010.
Citing figures from NAI/BT Commercial, a broker, the paper reports that this is the Valley's worst vacancy rate for four years. It quotes a local economist who notes that, like Bay Area home foreclosures, vacant office space represents a stock of real estate that must be "worked off" as part of the painful process of economic recovery.
As vacancy rates rise, rents are also falling. This situation could, in turn, lead to an increase in Bay Area bankruptcies if a lack of tenants leaves building owners unable to service their mortgages. Signs of a downward spiral of this sort can already be seen. The paper quotes a managing director at Silicon Valley's BT commercial saying some landlords are already in "giveaway" mode, anxious, as the paper puts it, "for any lease revenue they can get in the worst market since at least 1995." A Walnut Creek foreclosure attorney can counsel distressed property owners on loan modifications and other foreclosure prevention options.
Times like these are also a reminder of the importance of planning ahead. Beginning consultations with a San Francisco bankruptcy lawyer at an early stage - well before bankruptcy has become a certainty - can be a decisive factor in how your home or business makes it through these troubled times. A Bay Area bankruptcy attorney with a specialization in loan modification and foreclosure prevention can be a key ally in your efforts to save your property.
San Jose Mercury News: Silicon Valley office vacancies to remain high this year
