Interesting article in Techcrunch about how profitable companies want to open offices in Palo Alto, but they can't because there is not enough office space.
The article is not just talking about Facebook. There is a long list of other companies who are going elsewhere because of there is no space in Palo Alto.
Is this a problem with the city government not approving enough building permits? Or is kicking these companies out of town good for the city? More jobs does mean more traffic, more demand for housing, more customers for local businesses, etc.