Dotcoms are back and so is Silicon Valley Relocation!!!
Looks like the economy is still looking good in SV....
DOTCOMS are back. A decade after they fled from their large, funky offices leaving North Sydney a ghost town, they are now back filling the office void caused by the shrinking corporate sector.
The internet may be the nemesis of retailers but the rise of social media platforms has been a fillip for landlords following a slow start to the year.
The uncertainty in global financial markets has translated to increased business caution by financial companies looking to relocate or expand within the central business district.
Advertisement: Story continues below
In some instances, offices are being left empty as banks and law firms relocate across the city.
These spaces are being upgraded and rented to fast-growing internet businesses. Unlike 10 years ago, these former dot.bombs are now leasing prime office space in the CBD, further cementing their image as serious top 100 corporate businesses.
CB Richard Ellis's associate director, Stuart McSorley, said tenants were actively leasing 200 to 900 square metre offices, with online operators leading the pack.
Mr McSorley said the lack of financial services and recruitment activity, which traditionally drives Sydney's leasing market, has been offset by the rising demand from online operators such as social media and group buying providers.
Google, which has a long lease at Pyrmont, is on the hunt for an additional 10,000 square metres, equal to about four big office floors, to accommodate its growing staff numbers.
Facebook has signed up the penthouse floor at 77 King Street, above the Apple store, while LinkedIn has leased space at 130 Pitt Street for a minimum of five years.
The latest deal involved online site booking.com, which has leased an office on level 11 of the Australia Square Plaza Building at 95 Pitt Street for $670 a square metre for four years.
Leasing agent, Thomas Fredriksen at Knight Frank, said the deal was to establish the group's Asia Pacific head office.
''The exponential growth in the use of the internet in everyday life is driving the growth and relocation of the businesses from the fringe areas to being right in the heart of the CBD,'' he said.
Read more: http://www.smh.com.au/technology/biz-tech/slice-of-silicon-valley-as-social-media-moves-in-20110911-1k48k.html#ixzz1YeXrvkR3