A slowdown in the San Francisco tech market has to have a knock-on effect here in London, says CBRE’s Bay Area boss.
“There is a slowdown happening,” said Dan Harvey, CBRE’s Bay Area vice-president. “Investment is not stopping. But there are definitely nervous waters.”
Harvey put this down to a maturing tech market and the question around how venture capital investors exit deals when companies with high private valuations are reticent to list publicly.
He added that the situation was likely to have a knock-on effect in London: “What is happening in San Francisco is likely to be emulated in London. It has to. And anywhere that start-ups rely on venture capital and angel investment.
“It will get more expensive to get capital and that will not just result in a slowdown but could see tech hubs relocate as people start saying ‘can I really afford to locate myself in an expansive city like San Francisco or London?’”
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