A moment of silence...

From: Mike Cheponis <mac_at_Wireless.Com>
Date: Mon May 29 15:02:12 2000

On Mon, 29 May 2000, Hans Franke wrote:

> I still don't get the idea - Silicon Valley (Contra Coast, Alameda and
> Santa Clara), an area 4 times larger than Munich (City of Munich and
> Munich county) and just roughly the same population, and you're talking
> about skyrocketing prices ? maybe they should start to build something
> (preferable something other than highways).


It would appear as if more people want to live in Silicon Valley than Munich.

It's called "supply and demand".

The average house in Silicon Valley costs $577,280 (Source: SJ Mercury News,
29 May 2000, page 7B). ( That's 1.216.791 DM at today's exchange rates, or
622.134,66 Euros. )

Commercial real estate has undergone similar escalation, with landlords now
commonly asking for substantial percentages of stock in pre-IPO companies
in addition to high rents. I know personally of a deal that fell through
because the company that lost was unwilling to give approximately 1% of the
outstanding stock to the landlord (in addition to the high rent); the
"winning" company gave more stock+cash.

If Silicon Valley weren't Paradise (esp. for geeks), it wouldn't make
sense... But...

-Mike
Received on Mon May 29 2000 - 15:02:12 BST

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