Palanir, a data analytics company, is moving its headquarters from Silicone Valley in California to Denver. As a result, 300-400 high priced home buyers could be joining the migration to our Queen City of the West. So, even more pressure could be applied to our Denver luxury real estate market.
Corporate Relocation Buyers for Luxury Homes
You see, the average home price in Polo Alto in the Silicone Valley is $2.75 million. That’s much higher than our average home price of only $460,000. So, these corporate relocation buyers could drive up prices in our popular luxury home market which runs from $1-1.5m. Obviously, those California buyers can afford to increase the size of their home.
At the same time, many will be able to purchase larger homes. That could be an important factor in the time of the Covid 19 pandemic. Working from home may well continue as trend within the entire technology industry. So, larger homes can provide those coveted home offices necessary for an effective work from home environment.
Luxury home sales in that $1-1.5m sweet-spot have increased since the beginning of the year. And, the number of those homes for sale has decreased. As a result, multiple offers on attractive properties have driven up prices this year. Now, that trend could accelerate as Palanir and other Silicone Valley tech giants transfer employees here.
Those Denver relocation buyers often will be provided with “moving packages”. Those can include buyouts of their Silicone Valley homes. That turns those buyers into competitive cash buyers very quickly.
Palanir Move to Denver Adds to Tech Relocation Trend
Some of those other tech giants have already begun to relocate part of the their operations to Denver. Those include, Google’s huge campus in Boulder and other suburban offices. Also, Facebook, Twitter and Amazon have major offices here. Slack also has a large Boulder presence. Others could follow this trend.
Because, moving to Denver can be attractive to those tech companies as well as their employees. The employers see cost savings for local office space and eventually in the wage scale for employees. Denver engineers reportedly earn less than half than their Silicone Valley counterparts. Even administrative staff, most of which will be hired locally, will be paid less due to the difference in the cost of living.