Investing in Office building in Silicon Valley for Post-Quarantine
Perhaps your plans before COVID-19 included investing in an office building in Silicon Valley. As we stand on the doorstep of the post-quarantine business world, poised to enter the new normal, you may be wondering if Silicon Valley real estate ownership is still a good option for the future. The answer is a definite yes.
Purchasing an Office Building in Silicon Valley Remains a Sound Investment Choice
You may have heard reports speculating that demand for space in office buildings may be down, due to pandemic related practices of current businesses, postponement of new startup plans. The world economy and the real estate market, have definitely taken severe hits; but Silicon Valley differs greatly from many locations across the country.
The area’s economy has long been based on digital technology, an ever evolving sector of the economy, relatively immune from many factors that create a drag on other sectors. Entrepreneurship thrives in such a climate where change is constant, in which sound ideas for startups are brainstormed on a regular basis. The current situation, with continued recommendations of social distancing and remote visitation, has favored the technology sector, spurred prospects for innovation, thus new business openings and greater profit.
What About Rent Lapses if Tenants Do Face Difficulty?
News reports regularly share stories of how forced shutdowns made many businesses close their brick and mortar sites, resulting in lost profits for the businesses, skipped or reduced rental payments for building owners. Owners of buildings housing essential retail businesses, restaurants and hospitality industry sites, even some medical facilities have suffered.
Technology businesses were much less affected. Most still reaped profits and kept rental payments current on leased office space. The nature of tech businesses allowed them to function efficiently, as employees worked temporarily from their homes. So, owners of buildings leased by these companies still received at least some payment, often full profit.
Outside options do exist also, in the event companies may need a little help to make it through this temporary crisis. At the federal level, the Small Business Administration (SBA) offers SBA Economic Injury Loans and SBA Advances, SBA Paycheck Protection Program, SBA Debt Relief, and SBA Express Disaster Bridge Loans, as well as an SBA designed Employee Retention Tax Credit.
The state of California offers a Tax Return Filing Extension and a Small Business Payment Plan. Silicon Valley Strong, and many private sector organizations offer grants, loans, other relief programs for companies impacted by COVID-19.
In spite of current difficulties for many, in various locations and fields of business, Silicon Valley’s sound technology base promises to trigger regional expansion. Government officials and business managers are currently putting plans in place to re-open Silicon Valley responsibly.
Startup enterprises, in response to the public’s growing needs, will create the necessity for greater office space. The combination of these factors combines to paint the picture of a promising future. Want to become an active part of California’s post-quarantine recovery by investing in an office building in Silicon Valley? Contact us.