Silicon Valley Commercial Real Estate & Governor’s Live Address To Reopen California
Apr 14th, 2020
Shane Minnis
Just watched Governor Gavin Newsom’s live address to reopen California, here were my takeaways:
- Shelter-in-place is not a long-term solution, but there is also no near-term timeline to lift it
- Local government and health directors will weigh heavy on lifting local shelter-in-place measures
- 6 indicators (pictured below) were highlighted that need to be addressed before shelter-in-place mandates will be modified
- These indicators are complex and will likely take time to confidently address
- Light was shed on 2 particular indicators that will trigger ability to even start considering plans to loosen shelter-in-place:
1) Hold The Line of Shelter-In-Place: determined by 2 weeks consistent flattening/declining of COVID-19 hospitalizations, ICU and PUI cases
2) Tracing Capacity: infrastructure to support loosening by ability to monitor and protect our communities through testing, contact tracing, isolating, and supporting those who are positive or exposed to COVID-19 (likely through some type of digital software/app)
Newsom was also clear that things will look different as California makes modifications, centered around data, science and health/well-being. I’m not a doom and gloom kind of guy, rather I consider myself a realist. As such, several areas stood out from the governor’s live address that will directly impact Silicon Valley commercial real estate in the near and long-term along with the ability for businesses to get back to work:
- Physical distancing practices & guidelines
- New/modified floor plans (consistent with physical distancing practices & guidelines)
- Hand washing & face coverings
- Sanitation
- Ability to monitor & protect communities
- Health checks when entering facilities
- Supplies & equipment to keep workforce & customers safe
At this point these areas do not appear to be defined, but they were highlighted throughout the governor’s live address to reopen California. As a result, I anticipate these areas will be integral in the future plans to reopen business in Silicon Valley which will directly and indirectly impact commercial real estate. I will be paying close attention to updates and further clarification in these areas in order to assist clients in being proactive to not only get back to work, but to lead the charge in rebuilding Silicon Valley post-COVID-19 and enhancing employee confidence, health and well-being.
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Until next time…
