The area's tech firms, which typically favor office parks, are increasingly drawn to revitalized urban centers, according to The Wall Street Journal.
The trend can be seen in places like Redwood City, Palo Alto and Mountain View. Firms cite new restaurants and bars and improved public transportation for their moves. Some cities have responded by revamping zoning to allow for construction of more office space, says Pui-Wing Tam.
Disparate vacancy rates reflect the phenomenon, Tam writes:
"Commercial vacancy rates are particularly low in the downtown areas of some Silicon Valley towns, with downtown Menlo Park's prime office space just 3.3% vacant in the second quarter compared with the city's overall 14.8% commercial vacancy rate."
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