The future is going to bring pain for building owners, said Maloney, as he predicts East Bay rents will decline further. In addition, fewer companies will come here from Silicon Valley and San Francisco, as the dwindling cost and increasing availability of real estate in those areas makes relocation and expansion less attractive, he explained. Other indicators that the office market will lag is that once-bullish developers are stepping back. Dallas-based Lincoln Property Co. and Campbell's South Bay Development Co. both have new office projects pending in Concord and Pleasanton, respectively. Lincoln was prepared to move full steam ahead without signed tenants but is rethinking that strategy.
South Bay is also cautious.
Although storm clouds are immediate, industry watchers are positive about long-term prospects. Kelly Smolen covers commercial and residential real estate.