Silicon Valley congestion reaches all 7 major freeways
Though technology companies continue to attract high paying talent to the Bay Area, more and more people are moving out.
February 25, 2019
- Though technology companies continue to attract high paying talent to the Bay Area, more and more people are moving out - approximately 1,700 people in the past year, according to the Silicon Valley Institute for Regional Studies (Joint Venture). Although low affordability is the main reason why people are leaving the Bay Area, increased congestion times is another factor that influences the quality of life and the competitiveness of the market in attracting talent. Congestion incidences have more than quadrupled between 2013 and 2017, thereby increasing average commute times by 20%.
- Additionally, these trends place pressure on employers that desire office spaces located near transit to attract employees, as those spaces can rent for nearly twice as much as office spaces that require car-commuting, averaging $8.08 psf, and may even cost more if tenants award free transit passes to their employees. Although there are few signs of significant improvement in congestion times in the short term, the extension of BART to Downtown San Jose may help to ease traffic congestion slightly, though office rents are also likely to increase once it delivers.
Source: JLL Research, Joint Venture Silicon Valley, MTC