Silicon Valley Commercial Space
Status of Commercial Space One Year Into the COVID-19 Pandemic
Q1 2021
Commercial leasing activity in Silicon Valley was slow during the first quarter of 2021, with fewer than 100 transactions in total. A handful of large commercial buildings were completed despite the slowdown of region development overall since the start of the pandemic, and an impressive 15 million square feet remains in-progress. The quarter also marked the first notable rise in asking rents for industrial, lab, and R&D space. Vacancy rates for office and R&D space rose as well, likely as a result of continued pandemic-related telework and uncertainty. In contrast, industrial space vacancy rates remained relatively stable—bolstered by increases in online spending and the need for goods warehousing/delivery. Additionally, the recent boost in mobility companies going public through Special Purpose Acquisition Company mergers along with an infusion of venture capital are creating demand for advanced manufacturing space.
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 2021
- Figure A4. Quarterly Development In-Progress, since 2000
- Figure B1. Leased Space by Type, since 2016
- Figure B2. Leases by Type, since 2016
- Figure C1. Quarterly Vacancy Rates, since 2010
- Figure C2. Annual Vacancy Rates by Sector, since 2000
- Figure C3. Office Vacancy by Proximity to Transit, since 2017
- Figure D1. Quarterly Rents by Sector, since 2010
- Figure D2. Annual Average Rents by Sector, since 2000
- Figure D3. Office Rents by Proximity to Transit, since 2017
- Figure E1. In-Progress Office Space & Share Pre-Leased to Tech Firms, Bay Area, Q1 2021
- Figure E2. Owner vs. Tenant Occupancy, Silicon Valley, Q1 2021