Real Estate Articles

Home News Real Estate Articles

Celebrate Strengths, Work on Weaknesses in Silicon Valley, SVLG CEO Tells REALTORS®

March 5, 2010

In Silicon Valley, "we need to celebrate our strengths while continuing to work on our weaknesses." This was CEO/President of the Silicon Valley Leadership Group Carl Guardino's message to members of the Silicon Valley Association of REALTORS® at the Palo Alto District tour meeting today.

Silicon Valley's region of 2.4 million people, one million jobs and 7,000 high-tech employees still maintains a strong position in the country and the world, despite an 11.9 percent unemployment rate, according to Guardino. He said the Valley's elements of strength are its:

Treasure – 50 percent of venture capital deals go to Silicon Valley firms;
Training - three of the top 15 universities are here;
Talent – the Valley is well-poised in ethnicity and gender, i.e. 53 percent of engineers, 50 percent of CEOs and founders of tech companies, 50 percent of U.S. college professors here are foreign-born, and half of the full-time work force and college graduates are women; and
Technology – from aerospace defense, semi-conductors, personal computers, the Internet, green tech to smart phones, "waves of innovation continue to break here," he exclaimed.

Guardino said while appreciating what we have, there are concerns, as expressed in a recent CEO survey in which 140 CEOs representing $1.5 trillion dollars worth of business responded. Their concerns are housing, recruitment/retention of employees, traffic congestion/transportation, health care and taxes.

Guardino said Silicon Valley's sustainability rests on three themes:

1. Federal Initiatives

Guardino would like to see increased caps for highly educated foreign workers who wish to live and work in the region.

"Our strength is in our diversity," Guardino said.

He is also calling on the improvement of the Valley's transit network with the extension of Bart and construction of a high speed rail system.

2. State Impact

Part of the reason California is hurting is because of the structure of its legislative system. Guardino believes the state should unlock legislators by instituting an open primary and comprehensive reforms.

"Our system allows us to elect the most conservative Republicans and the most liberal Democrats and there is a big wide divide between them," Guardino said. "It doesn't allow them to find common ground."

3. Regional Imperatives

Proposals need to be introduced that address homes for workers, schools for children, health reform and a climate that encourages businesses to invest here. Guardino noted California's method of taxing businesses is "archaic" and needs to be revamped; 22 states with a strong innovation-based economy do not tax businesses as heavy as California.

Guardino said the survey of CEOs also overwhelmingly showed businesses are looking at a very robust 2010 in terms of employment. However, these issues need to be addressed, Guardino said, including that of pension reform, if we want Silicon Valley to continue to be "the envy of the earth's innovation economy."

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please email or call the SILVAR office at (408) 200-0100.

back to Real Estate Articles