Posted on 03/04/2021 3:06:44 PM PST by Vendome
A new survey throws cold water on a popular pandemic storyline about a mass exodus from Silicon Valley.
Of the startups that moved, 12% relocated to Texas, 21% moved to New York, and 21% to other areas of California.
Notably, Austin, Texas was not the city with the most significant growth in startups: Denver, Colorado did, at 21% growth.
Despite the financial stressors of the pandemic, the survey found that venture capital investment in 2020 was up over 2019 by 4%. And, Telstra added "Dallas and Fort Worth that had VCs' attention, with a 66% boost in the number of VC investments made in 2020."
Insider reported in January that some companies moving from Austin has spurred changes in the Texas capital, and that the real estate market was "reeling from the new transplants."
(Excerpt) Read more at msn.com ...
1st. Makes sense "Startups" didn't leave because well, they are startups and cash is tight.
2nd. They admit the increase in VC interest was extraordinarily high in Austin (66% increase in 2020) as opposed to Silicon Valley (4% increase in 2020).
Long Established businesses have upended their long term plans.
An Extraordinary number of headquarters are moving elsewhere.
Of those headquarterd in San Francisco, for example, if they come back I am being personally told they will come back at 10-25% of previous staffing.
But wait! There's more. They will also establish a rolling a work week of 3 days in, 2 days out and the following week will 2 days in, then 3 days out.
Just gotta go watch the YouTubes that show that San Francisco is largely abandoned now.
Which means that they will only need about 20% of existing square footage. And, because I know in math classes you need to show your work, if 25% are in the office, and then only half at a time, that's 12% of the existing workforce. So 12% = 20%. For those that don't see that, I'll give a more detailed explanation. Senior execs are going to want to keep C suite space and perks even if they are rarely in the office. So the C level guys will need large offices, and space for their "administrative assistants" (who may well have to be in the office full time even if they never see their bosses). So 8% of the existing square footage is required, whether needed or not.
Hilarious.
That is exactly what is happening.
Many of the largest law, investment and accounting firms are keeping executive offices, keeping just one or two conference rooms
Traffic is great around here since the work from home edicts were issued last year.. We zoom by Levi’s Stadium on game days .. no crowds at any entertainment venues locally .. but there is light at the end of the tunnel .. well, at least for downtown SJ where they now see new funding for the BART underground trains run.. sometime about the same time as the Hi-$pend Choochoo eXpress in the valley runs from Sodom to Gomorrah... uhh Sacramento and LA.
Yep.
I am there 1-2 days a week for sales calls and to get depressed I like to drive around The Financial District, Bay and Van Ness Street, Columbus, etc.
Even Japan Town is effed up.
LOL
I have telling everyone I no longer fight traffic, I fight stop lights and I never knew they were timed. Always thought they were metered.
So, now I run red lights. No cops around anywhere except Union Square.
The cops at Union Square are really nice. I bid them good day every time I’m there and I don’t wear a mask.
Was just there yesterday on Maidenfair Lane.
Was going to head over to Sausalito to Molly Stone for their Tomato Basil soup but ran out of time.
That train is stupid BTW.
The average speeds will be 50-70mph.
I will be driving to LA since I can do it in a few short hours(4)
I never fly.
Heck I drove to San Diego last week and came back the next day.
“... companies moving from Austin...”
Really?
I am in San Francisco and can confirm that downtown offices are largely empty. Rush hour on BART isn’t. A year ago the platforms were crowded, now they are near empty even at 8:00am or 5:00pm.
LOL
That’s funny
Didn’t catch that
Wire for you at the hotel
Yep
I just left the East Bay /San Francisco after 17 years. I moved to Idaho in September and used to take BART in from Walnut Creek to Embarcadero at least once a month. That is prior to many years that I worked on California Street. I hear from my friends that the financial district is a ghost town. It’s insane I have two more friends that are moving up here to Idaho and two more that I’ve moved to Texas. They all will fly to California on occasion but they’re definitely moving their offices out of state. I do miss the Tadich grill and the royal exchange.
I love Marin County. I just can’t stand all the over-educated yet imbecilic Liberals that live there. Beautiful and awesome for hiking and beaches, run by wealthy Bolsheviks. If I never go back to California it will be sad but in the end, it was voted on. Hard to dispute reality even though it sucks
“Wire for you at the hotel”
I’m not homeless....
[though traveling with a gun is likely going to become more problematic soon]
That’s even happening in Texas. Good luck with subletting out less than premium space in Class A buildings, however. Folks with expiring leases may want to upgrade for less money, but what legitimate business is going to want the lower tier space?
nevertheless the firms are leaving Californication
some are doing it outright
some are simply moving their expansions to other, more favorable states
and
some are doing it quietly, by letting their workers move to other states (such as any of those without state income taxes) and work from home
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