Silicon Valley Commercial Space
Q1 2018
The region continues to develop a significant amount of new commercial space to accommodate economic expansion, with more new space constructed since the beginning of 2015 than during the previous 13 years combined. However, despite the addition of new space, consolidation and rightsizing by some of Silicon Valley’s dominant tenants have led to a rise in office space vacancy in the first quarter of 2018 – reaching a rate not experienced since mid-2012. But while overall vacancy rates rose, several submarkets held steady; additionally, a surge in leasing activity indicates that the vacancy rate is expected to come back down. While office space rental rates in prime submarkets continued to increase in Q1, regional averages have been pulled down by older, less desirable inventory.
Charts/tables featured in this report:
- Figure A1. Quarterly Commercial Space Completions, since 2000
- Figure A2. Annual Commercial Space Completions, since 2010
- Table A3. Large Commercial Space Completions, Q1 2018
- Figure A4. Quarterly Development In-Progress, since 2000
- Figure B1. Quarterly Vacancy Rates, since 2010
- Figure B2. Annual Vacancy Rates by Sector, since 2000
- Figure C1. Quarterly Rents by Sector, since 2010
- Figure C2. Annual Average Rents by Sector, since 2000
- Figure D1. In-Progress Office Space & Share Pre-Leased to Tech Firms, Bay Area, Q1 2018