Report: 80 Percent of Internet Businesses to Fall | Adweek Report: 80 Percent of Internet Businesses to Fall | Adweek
Advertisement

Report: 80 Percent of Internet Businesses to Fall

Advertisement

About 80 percent of Internet businesses still standing today will give up the ghost in the next year or two, according to a study released on Friday by New York-based real estate firm Cushman & Wakefield and Rosen Consulting of Berkeley, Calif.

"The 80 percent number isn't a shocker, it's a number investment bankers have been citing for more than six months," said Amanda Howard, senior analyst with Rosen Consulting. The projected dot-com demise could cost as many as 30,000 jobs, many of which currently exist in the San Francisco Bay Area, home to Silicon Valley and many Internet-related businesses.

One silver lining in the cloud: commercial real estate rents in San Francisco, which increased dramatically in 1999 and 2000, are cooling off considerably, according to the report.