The Silicon Valley’s office market has shown to have a strong demand this year with gross absorption totaling over 9.3 million square feet. According to a report done by Colliers, “Silicon Valley’s Office market has recorded its twenty-first consecutive quarterly occupancy gain during the third quarter in 2017.” Showing even more promise this coming year with anywhere from 70.0 million square feet in future development.
Leasing activity this last year reached over 3.0 million square feet, with a total availability of 12.2% or 10.9 million sq ft – up 257 basis points from just last year. With a current 5.1 million sq ft of office space under construction, there are a number of opportunities for commercial real estate investors and business owners looking to expand and join this thriving tech community. Which shows no sign of stopping, growing a whomping 9.75% since 2010.
In terms of office rates, the Silicon Valley measured a decrease this last quarter at an average of $4.33 per sq ft. Silicon Valley is the place to be and there is no doubt about that!
For a more in depth analysis of the Silicon Valley office market, check out Collier’s review of the market.
If you’re an investor interested in learning more about the Silicon Valley commercial real estate market, in particular office and retail properties, contact myNOI’s selected broker in the Silicon Valley, Rafael Ramos.