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When Facebook Comes to Town

 

For many people, having a tech company like Facebook or Amazon move into town is the stuff of dreams. Anyone excited by technological advances and the way these companies can positively influence our lives will be eager to see the local impact of such organizations. Unfortunately, though, there are some very real drawbacks to having one of these giant corporations move to town, including the threat of gentrification and a real estate crisis.

 

Menlo Park residents are experiencing the crunch of welcoming Facebook to their town as the company moves their headquarters in. Scott Safadi of Cal Bay Property Management is quoted in a recent article in the Palo Alto Times to help explain how increased property values can lead to increased rent costs. "The guy who sells the building wants as much as possible from the sale. And so the buyer says, ‘I need to get as much rent as possible to make up for this purchase,’” he explained to the Times.

 

Phasing in rent increases over time can make the changes a little easier to bear, but for some locals, Facebook's influence over their town will forever change the personality and charm. Of course, there are many who find these changes to be a good thing. As Amazon searches for a place for their second headquarters, cities around the country are campaigning to bring the company to their area. With the corporation comes jobs, an influx of employees with cash to spend in local stores and restaurants, and a boon to the local real estate market.

 

There's no denying that there are a plethora of reasons why someone would want Amazon or Facebook to move into town. It's just as important, though, to recognize the very real drawbacks. In addition to increased cost of living, an increased population can stress an infrastructure that needs to expand more quickly than it is able. Traffic alone can be a nightmare when a small town undergoes huge changes in a matter of months.

 

As folks in DC, Atlanta and Raleigh compete for Amazon's second headquarters, it's important to bear both the pros and cons of their influence in mind.

 

- Scott Safadi, Cal Bay Property Management

For many people, having a tech company like Facebook or Amazon move into town is the stuff of dreams. Anyone excited by technological advances and the way these companies can positively influence our lives will be eager to see the local impact of such organizations. Unfortunately, though, there are some very real drawbacks to having one of these giant corporations move to town, including the threat of gentrification and a real estate crisis.

Menlo Park residents are experiencing the crunch of welcoming Facebook to their town as the company moves their headquarters in. Scott Safadi of Cal Bay Property Management is quoted in a recent article in the Palo Alto Times to help explain how increased property values can lead to increased rent costs. "The guy who sells the building wants as much as possible from the sale. And so the buyer says, ‘I need to get as much rent as possible to make up for this purchase,’” he explained to the Times.

Phasing in rent increases over time can make the changes a little easier to bear, but for some locals, Facebook's influence over their town will forever change the personality and charm. Of course, there are many who find these changes to be a good thing. As Amazon searches for a place for their second headquarters, cities around the country are campaigning to bring the company to their area. With the corporation comes jobs, an influx of employees with cash to spend in local stores and restaurants, and a boon to the local real estate market.

There's no denying that there are a plethora of reasons why someone would want Amazon or Facebook to move into town. It's just as important, though, to recognize the very real drawbacks. In addition to increased cost of living, an increased population can stress an infrastructure that needs to expand more quickly than it is able. Traffic alone can be a nightmare when a small town undergoes huge changes in a matter of months.

As folks in DC, Atlanta and Raleigh compete for Amazon's second headquarters, it's important to bear both the pros and cons of their influence in mind.

- Scott Safadi, Cal Bay Property Management

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