So we manufacture land. For example, we take an old landfill site or a wetland, and then develop it into an office park. That's what we did at the AmericaCenter in San Jose, which is being developed on spec now. The biggest challenge is convincing the city and other agencies that we can build buildings there on that kind of land. But we have a track record of doing it, which makes a difference when presenting our proposals.
Rents are way ahead of property values in Silicon Valley, no doubt about it.
Rents are probably more in line with the values of buildings in the Los Angeles area. But it doesn't matter. Anywhere you go, rent is a non-issue. Everything about development is geared toward location, transportation, and the proximity to housing. Finding sites close to transportation hubs, such as BART or Caltrain, is a big plus for tenants.