Almost $100/square foot in Mountain View? I used to work in a high-rise in Midtown Manhattan (very desirable location: adjacent to Grand Central, and convenient to the 4/5/6, the 7, and Metro North). Rent was in the $70-80 neighborhood.
I moved the office a couple of years ago and got more space for less money than our existing landlord wanted just to renew. I still see a lot of room for expansion up and down the peninsula so clearly there is some downward pressure there.
Caltrain access is a big win though. Folks don't want to drive the freeways during rush hours (understandable) or just don't want the hassle of owning a car.
The real problem is everyone wants proximity to both 101 and Caltrain, which limits you to an exceptionally small area and small number of commercial buildings.
(I went in with some friends on warehouse space on Treasure Island last month, for about $12/ft with free 3ph power...finally going to have a decent hardware lab.)
EDIT: this is for class B+ space. I'm guessing the space being talked about is class A.