At an astonishing rate of growth, the internet tech giant Google is buying San Francisco and Bay Area real estate by the pound. As other U.S. brick and mortar companies face an uphill climb in retail and consumer markets, the technology world is flush with cash.
Google is buying commercial real estate acquisitions, adding an estimated 30,000 new jobs in the Bay Area. As young tech developers are centered around the San Francisco Bay Area, the tech giant company is grabbing new property and rehabilitating old structures. As Northern California and Silicon Valley are golden as being the top destination for internet startups, Google is buying properties on their "home turf”.
Local San Francisco Home Buyers
How does this affect California real estate home buyers in San Francisco? Basically if you are not earning a tech salary, times could get tougher for first time home buyers. Historically San Francisco real estate has never been cheap. However, with Google's new acquisitions it means first and new home buyers in the area will be competing with 30,000 potential cash buyers.
Home prices in the Bay Area
Everyone knows companies like Google offer salaries that are high paying. Most salaries are top notch even for developers with no formal education. If you are a coding wizard you will get hired straight out of high school with a $200k plus salary. Google needs to meet the high priced salary requirements of these young geniuses as they are the lifeblood of the company.
San Francisco real estate and companies like Google have been intertwined since the beginning of the computer development business. From Apple and Microsoft to the newer companies of the last two decades like Google, WordPress, Facebook, Twitter and others. The local residents have also been able to benefit as they supply goods and services to this community of young high net worth employees.
Local Northern California businesses catering to the retail, shopping and service needs of a very young affluent crowd may be an art in itself. The thing to remember in all of this is the importance of prioritizing business adaptability and knowing that Google is helping the economy. Whether you are a Google employee working insanely long hours or a local business shopkeeper, the huge company is “keeping the wheels of commerce rolling”.
Obviously Google’s interest is in acquiring commercial real estate, which will ultimately be reflected in new residential California home purchases by its employees. As the new employees want to get a better tax break, start families, or invest, they will buy houses. Amazon did a similar thing in Seattle, buying up commercial real estate which pushed up the local home prices. Conversely another tech company, WordPress hires employees that are remote and work on an all online business paradigm allowing employees to live anywhere in the world. Google does this on a limited program for certain employees, but time will only tell if they decide to hire more developers locally, or on a remote basis.
The bottom line is any new jobs for American workers in the present economy is a really great thing! Google is moving into product production, real estate development, finance and a host of other business categories. As the tech monolith continues to expand and grow, so will its huge appetite for investment and commercial California real estate!