Apple Park boosting local economy with property boom, influx of shoppers

Posted:
in General Discussion
The construction of Apple's new headquarters is helping improve the fortunes of those living close to the Cupertino campus, including increases in development projects, attempts by businesses to anticipate the influx of Apple employees to the area, and increased real estate prices as some of the benefits stemming from Apple Park's creation.




The campus, which includes its signature 2.8 million square foot ring-shaped building, will pay host to around 12,000 Apple employees when it is fully operational. This influx of people has prompted action by businesses to capitalize on the situation, with a report from The New York Times highlighting the incoming local improvements as the campus heads towards completion.

Approximately 95 development projects are being planned for Sunnyvale, a nearby town to Apple Park, activity that city manager Deanna J Santana told the report she had not seen before. In Cupertino, one Main Street "living and dining complex" opened in early 2016, but will expand this year with the introduction of the downtown enclave The Lofts, a community consisting of 120 apartments, shops, and restaurants.

The Residence Inn in Main Street Cupertino is also customizing its service for Apple employees and the firm's partners. The guest facilities will be upgraded with Mac desktops and high-speed connections to the Internet, after Sand Hill Hotel Management consulted with Apple about the needs of its employees.

"All the things we have, lined up with what they needed," said Sand Hill partner Mark Lynn. "They will represent a large part of our business."

The report does go into some detail about Apple's dealings with the local community, both from the positive and negative aspects. Apple hosted more than 110 community gatherings during the design phase of the campus, including publishing community mailers five times to 26,000 households about what to expect during the construction period.

One notable debate concerned Homestead Road, a thoroughfare between Apple Park and the Birdland neighborhood, with Cupertino officials planning to construct a tree-lined median to calm traffic on the road, with Apple offering to cover the construction costs. Local homeowners objected to the move, suggesting its creation would eliminate one lane and make traffic worse, a claim eventually agreed upon by the city after a Sunnyvale town meeting.

During the construction residents of Birdland complained about the early-morning construction rigs traveling along the streets, with road closures, green sheeted barriers, and potholes causing issues for the community. Dan Whisenhunt, Apple VP of real estate and development, advised the company attempted to answer every complaint received, "and if the issue is serious enough, I will personally visit to see what is going on."

One example is the complaint from one resident that her car was covered with dust from the construction. Apple responded by sending carwash certificates to clean the vehicle.

Despite the issues, homeowners have benefited from the extended real estate boom, with prices increasing 15 to 20 percent year after year since Apple announced its construction project, with local real estate agent Art Maryon advising bidders are typically offering 20 to 25 percent over the asking price for properties. Some residents have taken advantage of these increases, selling to Apple employees at a high price and moving to a quieter area, but those staying are anticipating increased traffic and parking issues when the Apple employees move in.

One thing residents will probably look forward to will be the reduction in tourists, wanting to photograph the buildings while they still can. Apple has planted 9,000 trees within the campus, which will block the view of the buildings to passers by.

Once the man-made forest has grown, the public will be provided access to a small part of the campus in a dedicated visitors center.
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Comments

  • Reply 1 of 21
    tdknoxtdknox Posts: 64member
    I used to live in the apartment complex literally across the street from the new campus (Look at any map of the new campus. See the bottom left corner where it's not part of the campus? That's the apartment complex). It boomed my rent prices so much I had to move.
    lostkiwi
  • Reply 2 of 21
    lkrupplkrupp Posts: 6,091member
    I guess some people were born to complain. Your car got dirty from construction dust? So wash it instead of complaining to Apple. I just finished reading an article about a dad who built a DYI  water super-slide for the neighborhood kids to use during the neighborhood July 4th picnic. Of course some curmudgeon filed a complaint with the police claiming the slide was blocking the street. When two cops showed up to check it out they determined the slide wasn’t causing an issue and then asked if they could take a ride on it. The little shorty cop went down in a garbage bag. The big burly cop went down on a big inner tube. They both said they hoped the person making the complaint saw it all go down. The complainer was probably peaking through their blinds so no one would see them looking. Some people have no joy.
    edited July 2017 patchythepiratelostkiwimacxpresstallest skiljony0
  • Reply 3 of 21
    SoliSoli Posts: 7,678member
    tdknox said:
    I used to live in the apartment complex literally across the street from the new campus (Look at any map of the new campus. See the bottom left corner where it's not part of the campus? That's the apartment complex). It boomed my rent prices so much I had to move.
    And it's just going to get pricer with the remodel.



    lkrupp said:
    I guess some people were born to complain. Your car got dirty from construction dust? So wash it instead of complaining to Apple. I just finished reading an article about a dad who built a DYI  water super-slide for the neighborhood kids to use during the neighborhood July 4th picnic. Of course some curmudgeon filed a complaint with the police claiming the slide was blocking the street. When two cops showed up to check it out they determined the slide wasn’t causing an issue and then asked if they could take a ride on it. The little shorty cop went down in a garbage bag. The big burly cop went down on a big inner tube. They both said they hoped the person making the complaint saw it all go down. The complainer was probably peaking through their blinds so no one would see them looking. Some people have no joy.
    LOL

  • Reply 4 of 21
    "increased real estate prices" are not a benefit to most people, nor to most companies.
    cornchip
  • Reply 5 of 21
    mtbnutmtbnut Posts: 189member
    Is there a way we can have all the pros and none of the cons of the Apple Park being built in my neighborhood? Concerned NIMBY
    lostkiwiradarthekat
  • Reply 6 of 21
    levilevi Posts: 343member
    This isn’t solely a Cupertino, or Apple issue. Google, Facebook and others don’t factor in? Rent and housing prices all over the Bay Area from North of SF to south of San Jose have exploded. Our three bedroom nearly doubled since 2012. The last ten years have been good for tech. 
  • Reply 7 of 21
    levilevi Posts: 343member
    I would also note that if the handful of Apple employees I know - none live in Cupertino - most either San Jose or San Francisco. Cupertino is a boring, family oriented suburb. The appeal of living there among those here is the schools, which are some of the best in the country. 
    lostkiwi
  • Reply 8 of 21
    wizard69wizard69 Posts: 12,468member
    tdknox said:
    I used to live in the apartment complex literally across the street from the new campus (Look at any map of the new campus. See the bottom left corner where it's not part of the campus? That's the apartment complex). It boomed my rent prices so much I had to move
    This is the major problem with this area of the country, rents and homes are extremely expensive for what you get.   While i understand Apples need for this project i really dont see how placing the campus in this location is in their best interest.  They end up having a situation where the majority of their employees will have to commute very long distance just to have affordable housing.   Remember not everyone working there will be a high earning scientist or manager.  


    Hopefully rents will stabilize or even moderate over time but i see a lot of people ending up having to move due to this project.  You wont be the only one.  
  • Reply 9 of 21
    wizard69wizard69 Posts: 12,468member
    lkrupp said:
    I guess some people were born to complain. Your car got dirty from construction dust? So wash it instead of complaining to Apple. I just finished reading an article about a dad who built a DYI  water super-slide for the neighborhood kids to use during the neighborhood July 4th picnic. Of course some curmudgeon filed a complaint with the police claiming the slide was blocking the street. When two cops showed up to check it out they determined the slide wasn’t causing an issue and then asked if they could take a ride on it. The little shorty cop went down in a garbage bag. The big burly cop went down on a big inner tube. They both said they hoped the person making the complaint saw it all go down. The complainer was probably peaking through their blinds so no one would see them looking. Some people have no joy.
    Unfortunately too many of these sorts of people have an excessive influence on our elected officials often being responsible for very oppressive local ordinances.  Often it is a matter of surpression of anything fun a kid might do including having a water slide on the forth of July.  Luckily in this caes the cops recognized how pathetic this person was and sent them a message.   Sadly it doesnt always work out that way,    

    The moral of the story here is too avoid supporting local regulations that will eventually be used against you and your freedoms. 
  • Reply 10 of 21
    wizard69wizard69 Posts: 12,468member

    "increased real estate prices" are not a benefit to most people, nor to most companies.
    This is why many companies actively look for places in the country that are low cost or need a boost.    These places allow a company to offer a higher standard of living to its employees at a far lower cost to the company.  

    Having spent time in the bay area i can say with some confidence that the place suvks.  You can buy a very decent home in modt parts of the country for a $100000 and not be able to buy a dog house for that in the bay area.   Not to mention suffering from Califirnia crime and liberalism.  

    By the way im talking small ranch sized single family housing here.   Something an engineer or technician might want to move into at the start of a new job.  
  • Reply 11 of 21
    sflocalsflocal Posts: 4,128member
    wizard69 said:
    tdknox said:
    I used to live in the apartment complex literally across the street from the new campus (Look at any map of the new campus. See the bottom left corner where it's not part of the campus? That's the apartment complex). It boomed my rent prices so much I had to move
    This is the major problem with this area of the country, rents and homes are extremely expensive for what you get.   While i understand Apples need for this project i really dont see how placing the campus in this location is in their best interest.  They end up having a situation where the majority of their employees will have to commute very long distance just to have affordable housing.   Remember not everyone working there will be a high earning scientist or manager.  


    Hopefully rents will stabilize or even moderate over time but i see a lot of people ending up having to move due to this project.  You wont be the only one.  
    Wrong.  Rents and homes are extremely expensive when located right next to something very desirable whether it be a city, a company, transportation hub, etc... 

    Articles like these really irk me because the answer is the elephant in the room that everyone pretends is not there.  There are just too many people wanting to live in a given area and the result is having to compete for limited resources - housing in this case.  Cry me a river.  There's plenty of cheap real estate in Utah.  Knock yourself out.

    If you want a cheap house next to the Apple campus, should we force property owners that took the risk, bought property, developed it, and making a profit from that risk from charging rates that reflect the market?  Better yet, why don't we force sellers to sell their home "cheap" so that future owners can afford it, then be prohibited from ever selling their property at a profit?  Would that be better?

    The reality is grim.  Rents will not "stabilize" as you're hoping simply because it won't.  Everyone wants to live in the Bay Area.  So the only option is to build up, and eventually the Bay Area will look like a very crowded version of Hong Kong.  

    Everyone complained about the high real-estate prices of San Francisco.  So then they all moved to Oakland, or Sacramento, or Oregon/Washington, and guess what?  They are having the EXACT same problem now because (surprise), everyone wants to live there.

    Buying property on the west coast on the cheap was a luxury our parents/grandparents had.  That opportunity is essentially gone.  Everyone wants the tax revenue that companies like Apple brings in, but then turns right around and complains about the negative aspects of it.
    StrangeDays
  • Reply 12 of 21
    StrangeDaysStrangeDays Posts: 4,936member
    wizard69 said:

    "increased real estate prices" are not a benefit to most people, nor to most companies.
    This is why many companies actively look for places in the country that are low cost or need a boost.    These places allow a company to offer a higher standard of living to its employees at a far lower cost to the company.  

    Having spent time in the bay area i can say with some confidence that the place suvks.  You can buy a very decent home in modt parts of the country for a $100000 and not be able to buy a dog house for that in the bay area.   Not to mention suffering from Califirnia crime and liberalism.  

    By the way im talking small ranch sized single family housing here.   Something an engineer or technician might want to move into at the start of a new job.  
    California liberalism sounds awesome to me. So happy to see places leading the charge against homophobia, theocracy, and other conservative "values". I'm thankful that so much of the US technology as well as TV/film entertainment that most every one of us enjoys comes from a state that shares my values. 

    As for crime, there is no "California crime" problem I'm aware of -- just metro crime. I now live in the deep south and we have intense crime. So do other major US cities all outside of CA. 

    And I have no idea where you could go to get a good house for only $100,000. Likely not anyplace that is going to offer the salary, quality of life, or cultural amenities that I enjoy.
    edited July 2017 Solimacxpressroundaboutnowtyler82tdknoxbadmonk
  • Reply 13 of 21
    zoetmbzoetmb Posts: 2,292member
    "increased real estate prices" are not a benefit to most people, nor to most companies.
    It's a benefit to those who sell and can then move to a less expensive area and a great big giant negative to everyone else except perhaps for the localities who benefit from the increased real-estate tax revenue.  

    I happened to be looking at housing prices across the country the other day and it sees like there's fewer and fewer places where decent housing prices are reasonable.   In the big cities where people want to or have to live, housing prices have become completely absurd.   An Archie Bunker house near where I live (really -- looks exactly like the Bunker house) is asking $950,000 and it probably needs $200K of renovation and will have high property taxes.  

    Personally, I don't see how this is sustainable.  I predict another housing crash.  I just don't see how there are enough people who earn enough to pay these prices.  

  • Reply 14 of 21
    stevehsteveh Posts: 476member
    "increased real estate prices" are not a benefit to most people, nor to most companies.
    Only to sellers.
  • Reply 15 of 21
    tyler82tyler82 Posts: 683member
    wizard69 said:

    "increased real estate prices" are not a benefit to most people, nor to most companies.
    This is why many companies actively look for places in the country that are low cost or need a boost.    These places allow a company to offer a higher standard of living to its employees at a far lower cost to the company.  

    Having spent time in the bay area i can say with some confidence that the place suvks.  You can buy a very decent home in modt parts of the country for a $100000 and not be able to buy a dog house for that in the bay area.   Not to mention suffering from Califirnia crime and liberalism.  

    By the way im talking small ranch sized single family housing here.   Something an engineer or technician might want to move into at the start of a new job.  
    It is California liberalism that brought you Apple and the computer revolution.
    Soli
  • Reply 16 of 21
    fmalloyfmalloy Posts: 99member
    levi said:
    I would also note that if the handful of Apple employees I know - none live in Cupertino - most either San Jose or San Francisco. Cupertino is a boring, family oriented suburb. The appeal of living there among those here is the schools, which are some of the best in the country. 
    It's a boring, family oriented suburb and that's how the residents want it. They don't want it to be controlled by a massive corporate spaceship with thousands of Apple employees clogging the roads, gas stations, restaurants, and shopping centers.

    The schools are the best in the country because Cupertino is essentially a gated community where the price of admission is on the order of $1.5-2M. That makes all the rich kids the progeny of very smart VP and GM parents, and keeps out the riff-raff lower-class students. It has nothing to do with the schools or the teachers - it's intentional segregation, which is quite amusing considering the Bay Area is supposed to be so diverse. They welcome immigrants and refugees and dreamers...only not in MY town.
  • Reply 17 of 21
    fmalloyfmalloy Posts: 99member
    zoetmb said:

    Personally, I don't see how this is sustainable.  I predict another housing crash.  I just don't see how there are enough people who earn enough to pay these prices.  

    It isn't sustainable, there will surely be another housing crash, and here it will be caused by a tech downturn. Apple/Google growth will slow and we know how Wall Street responds to that. As soon as significant layoffs happen, the prices will drop. I saw it happen in the '90s with the whole Pets.com/Webvan thing. 

    We're currently in the bubble of "Apple will reign forever" and riding that wave...for now.
  • Reply 18 of 21
    foggyhillfoggyhill Posts: 4,692member
    fmalloy said:
    zoetmb said:

    Personally, I don't see how this is sustainable.  I predict another housing crash.  I just don't see how there are enough people who earn enough to pay these prices.  

    It isn't sustainable, there will surely be another housing crash, and here it will be caused by a tech downturn. Apple/Google growth will slow and we know how Wall Street responds to that. As soon as significant layoffs happen, the prices will drop. I saw it happen in the '90s with the whole Pets.com/Webvan thing. 

    We're currently in the bubble of "Apple will reign forever" and riding that wave...for now.
    Considering Apple's PE is one of the lowest in the industry, your post is kind of Ironic...
    If anything, Apple not "reigning forever" is already priced in.
    Its companies like Amazon, Google and Tesla that are living on pies in the sky that risk being damaged more by a stock plunge.
  • Reply 19 of 21
    tallest skiltallest skil Posts: 43,249member
    StrangeDays said:
    I'm thankful that so much of the US technology as well as TV/film entertainment that most every one of us enjoys comes from a state that shares my values.
    Yeah, what a fucking coincidence, eh?
    cornchip
  • Reply 20 of 21
    badmonkbadmonk Posts: 684member
    wizard69 said:

    "increased real estate prices" are not a benefit to most people, nor to most companies.
    This is why many companies actively look for places in the country that are low cost or need a boost.    These places allow a company to offer a higher standard of living to its employees at a far lower cost to the company.  

    Having spent time in the bay area i can say with some confidence that the place suvks.  You can buy a very decent home in modt parts of the country for a $100000 and not be able to buy a dog house for that in the bay area.   Not to mention suffering from Califirnia crime and liberalism.  

    By the way im talking small ranch sized single family housing here.   Something an engineer or technician might want to move into at the start of a new job.  
    California liberalism sounds awesome to me. So happy to see places leading the charge against homophobia, theocracy, and other conservative "values". I'm thankful that so much of the US technology as well as TV/film entertainment that most every one of us enjoys comes from a state that shares my values. 

    As for crime, there is no "California crime" problem I'm aware of -- just metro crime. I now live in the deep south and we have intense crime. So do other major US cities all outside of CA. 

    And I have no idea where you could go to get a good house for only $100,000. Likely not anyplace that is going to offer the salary, quality of life, or cultural amenities that I enjoy.
    actually the most problematic areas for crime are now rural...aka Trumplandia.
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