Law Office of Henry B. LaTorraca Civil Trial Attorney

Tech companies and real estate markets

Tech startups are taking up increasing numbers of office spaces in California. Since 2017, tech companies have accounted for 42 percent of the square footage in leased commercial spaces in North America. That amount is double the percentage of the financial industry.

This trend has caused an increase in rent prices for commercial spaces. In the top 25 cities for tech business, rent for office spaces rose 59 percent between 2000 and 2018, from an average of $199 per square foot to $316. Of the top markets for construction for new office space, 15 out of 20 were for tech markets.

It is not surprising that tech companies are driving demand for office spaces, considering their effect on the economy as a whole. Apple and Amazon's valuations both recently surpassed the trillion dollar mark. New tech jobs have surpassed the increases in other industries, with 1.1 million jobs added since 2010 for an 18.6 percent increase compared to 14.1 percent in the economy overall.

Much of the growth in the tech industry has clustered around cities like San Francisco. In some cities, the tech industry has become a critical factor for real estate growth. The rise in rental costs is making these areas unaffordable for some.

Business owners may benefit from speaking to an attorney with experience in commercial real estate before signing a lease agreement. Zoning laws usually determine what type of business can operate in a particular space. Many of the terms in a commercial lease agreement may be negotiable, including the cost of rental payments.

An attorney may be able to assist business clients who are looking to build new office space as well. Contract negotiation is key to obtaining a fair deal in a competitive real estate market. An attorney may be able to assist business owners and real estate agencies with commercial real estate contracts and litigation.

No Comments

Leave a comment
Comment Information

Creative Solutions for Complex Legal Issues

Map email us for a response

Contact the Law Office of Henry B. LaTorraca

Prospective clients are invited to contact attorney LaTorraca at 562-216-2942 for an initial lawyer consultation to discuss their legal matter.

*AV Preeminent is a certification mark of Reed Elsevier Properties Inc., used in accordance with the Martindale-Hubbell certification procedures, standards and policies. Martindale-Hubbell is the facilitator of a peer review rating process. Ratings reflect the confidential opinions of members of the Bar and the judiciary. Martindale-Hubbell ratings fall into two categories - legal ability and general ethical standards.

Contact Us

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Follow Henry B. LaTorraca Via Social Media

400 Oceangate Suite 700 Long Beach, CA 90802-4306 Phone: 562-216-2942 Fax: 562-216-2943 Map & Directions

facebook google plus LinkedIn directions