patrick.net

Hey, your writing skills are terrible. Your ability to construct a reasonable argument is also suspect. Either that or your a troll.

chip_designer says

But my post is about the silicon valley real estate. The bottom came and go.

I take it you have been reading the news lately...
HP not doing so well,... the old saying from the 80s is true today.. when the Computer makers sneeze, its the chip and components vendors catch a cold.

"This week, computer giant Hewlett-Packard announced that it had lost $8.86 billion in the third quarter, a record for the 73-year-old company. The loss — the latest in a string of bad news for the company, whose stock is down 32 percent this year"

The issue, is still true today...

ON THE RECORD / CARL GUARDINO
http://www.sfgate.com/business/ontherecord/article/ON-THE-RECORD-CARL-GUARDINO-2574540.php#ixzz1v6EFUJaI

Q: So are those really challenges?

A: Unequivocally, yes. Not only to the CEOs in the boardroom, but to any family you talk to in their living room. What we hear time after time from CEOs as well as frontline employees is how incredibly difficult it is to come here and stay here. That truly does have an impact on a company's bottom line when the cost differential is so much higher here than it is in other regions around the state, nation and globe, or the ability to recruit top talent is also impacted.

You mentioned housing. It probably is the top concern we hear about in Silicon Valley from both CEOs and employees in terms of local issues. Does that have an impact? Let me put a finer point on it.

Hewlett-Packard and Dell are the top two computer-makers in the world. Corporate headquarters for HP are located in Palo Alto and Dell is in Round Rock, Texas. Obviously, they both have people and facilities around the globe.

In those two communities where their corporate headquarters are and where a lot of research and development takes place, the median resale price for a home in Palo Alto is about $1.6 million. In Round Rock, Texas, it's about $180,000, except the home and property are bigger.

We hear from HP all the time that a huge deterrent to the ability to recruit and retain people anywhere near Silicon Valley is the housing issue.

We don't hear that from Dell, which is also a member company, about their operations in Round Rock. It does continue to plague us and we will continue to sound the alarm.

this article just exxagerate to make bad noise. People working at HP in palo alto don't necessarily need live in PA. Duh!

Thomas, stop being afraid , time to buy, or you may loose this chance.

chip_designer says

Thomas, stop being afraid , time to buy, or you may loose this chance.

lol! i bough my current home in Los Gatos back in 1992 at a low price which would be considered obscene to some today. There is a "normal", but we are not there yet.

ah, so you want prices to go back to 1982 los gatos levels.
HUmm...you are expecting too much.

I really hate to encourage TW, but here we go. Sunnyvale based company NetApp is adding jobs, but it isn't in Silicon Valley:
Data storage company NetApp announced Thursday a major expansion of its Wichita facility, to include the addition of about 400 jobs during the next five years.

chip_designer says

ah, so you want prices to go back to 1982 los gatos levels.
HUmm...you are expecting too much.

Stability... its a tough concept to understand! our 'normal pricing' is 1982 or mid 90s prices plus inflation.. had you been here in SV 2-3 decades you would understand this.

You CANNOT have high home prices and deflating industries forced to pay local employees for their half million homes in the short or long run. HP, Intel, etc will rather ship your chip design job elsewhere .. and they have done just that.

Perhaps you are unaware as Robert shiller has researched.. prices appreciate at the rate of inflation. Clearly prices have still much to correct.

EBGuy says

I really hate to encourage TW, but here we go. Sunnyvale based company NetApp is adding jobs, but it isn't in Silicon Valley:

you need not listen to what i said.. but you certainly need to watch this ...

see 2:00+ and listen to the Godfather! subcontract headcount, talent elsewhere, regulations, move outside of California, mfg and R&D, lower cost of living.

http://pressheretv.com/?p=2710

Companies do what they have to do. The natural evolution of a large mature company is to expand outside the headquarter. Apple expanding in Texas is no different than IBM, Samsung or Mircosoft doing the same exact thing.

Over the recent years, Samsung, Fujitsu, Microsoft, Motorola mobile, RIMM Nokia, Amazon, Walmart.com, Dell and hundreds of other companies added headcount in the Silicon Valley. The biggest headcount adding was from Salesforce.com which went from 80 - 8000 in 10 years and a fortune magzine listed them as the highest paying company in this world. They are stil leasing even more space.

It is clear, Silicon Valley is not going to be a manufacturing hub as their strengh is performing much higher value-add. It is still by far the most robust region in the world.

More importantly, Silicon Valley is still getting the lions share of the VC money, especially in technology and social media, so the next Pandora, Linkedin, Facebook, Twitter, Yelp, Airbnb, Square, Pinterest, will more likely than not still come from this region.

SFace says

Over the recent years, Samsung, Fujitsu, Microsoft, Motorola mobile, RIMM Nokia, Amazon, Walmart.com, Dell and hundreds of other companies added headcount in the Silicon Valley.

no like dell, they acquired these companies because SV companies were burning plenty of cash compared to their rivals elsewhere.. in due time as in the past, the local operations will vanish elsewhere.

SFace says

More importantly, Silicon Valley is still getting the lions share of the VC money, especially in technology and social media, so the next Pandora, Linkedin, Facebook, Twitter, Yelp, Airbnb, Square, Pinterest, will more likely than not still come from this region.

Toys! what a pathetic load of crap money is being spent on !

dodgerfanjohn says

Hey, your writing skills are terrible. Your ability to construct a reasonable argument is also suspect. Either that or your a troll.

He's probably Asian. Certain things don't translate that well. Doesn't make him a troll. Oh by the way, when you slam someone, but you yourself do not know the difference between your and you're, you make yourself look like an ass.

Chip - the real estate in your area is being treated more as an alternative to the volatile, and, some would even say completely automated equities market. RE in certain markets is serving as a sort of investor haven for wealth preservation. I don't think it will end well, but I do not know when it will end.

If you were really smart, you'd move out to Victorville. It's a man's life.

SFace says

It is clear, Silicon Valley is not going to be a manufacturing hub as their strengh is performing much higher value-add.

that is a economic and national security 'problem'.. trying to sweep it under the rug isnt a solution. As many founders/CEO will state, its govt policies that have driven mfg and R&D out of SV and CA... New pro-business leadership needs to be elected into office.

Yes, you can have MFG and R&D in CA..

what ever you want to do or make will be dictated by who and where Semiconductors are made... No semi... well forget about anything digital! Semis which we had nearly 80% global production back in the 80s isnt going to vanish anytime soon.. it will be around for a very very long time.

You better find a solution to have it back in the USA, else you lose everything!

JodyChunder says

Victorville. It's a man's life.

are there a lot of hot chicks in there?

This guy is my kind of guy the MAN I’m telling you he is telling you like it is!!! “Thomas, stop being afraid , time to buy, or you may loose this chance.” BOOCHAKOO I am always saying teh same thing. Don’t be a silly nilly: here you go in a beautiful shiny nutshell “THE BOTTOM CAME AND GO” Duh not get out there and lose the pocket books out with the cashish my friends. BORROW AS MUCH AS YOU CAN buy house after house rent them to looser renters and your golden future is assured. HOT CHICKALICKA

chip_designer says

Victorville. It's a man's life.

are there a lot of hot chicks in there?

Positively chock-a-block.