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Apple Driving Real Estate Boom 2.0

Apple's thirst for office space is driving a real estate boom.



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    SAN FRANCISCO, CA - MARCH 07: Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena Center for the Arts on March 7, 2012 in San Francisco, California. In the first product release following the death of Steve Jobs, Apple Inc. introduced the third version of the iPad and an updated Apple TV. (Photo by Kevork Djansezian/Getty Images)

    Technology's economic renaissance is also leading to a boom, version 2.0, in real estate.

    Thank you, Apple.

    The Silicon Valley giant is leading the "biggest leasing surge" since the first dot-com boom, as Apple is the leading lessor of 2.7 million square feet in new office space, according to Bloomberg News.

    Rents are increasing to an average of $36 per square foot, propelling the market six-fold from a record low in 2009, the news network reported.

    Apple, the world's most valuable company, has leased more than 1 million square feet of space in Sunnyvale, Bloomberg reported, and may soon rent another 700,000 square feet.

    The market is responding: office vacancy in Sunnyvale declined to 16.3 percent in the fourth quarter and rents rose 18 percent from a year earlier to $45.60 a square foot, according to data from real estate data-crunchers Cassidy Turley.

    In Santa Clara, rents increased 11 percent to $24 a square foot, while vacancy fell to 21.5 percent from 22.3 percent, Bloomberg reported.

    This may not last forever: Apple plans to build a 2.8 million square foot headquarters in Cupertino, which when completed would be one of the world's biggest office buildings.