Commercial Space, Q1 2023

Quarterly Report

Silicon Valley Commercial Space

Q1 2023

Newly-introduced space-efficiencies at Silicon Valley companies are resulting in additional sublease space on the market. With the backdrop of inflation, higher interest rates, and other economic woes, many of Silicon Valley’s tech giants, including Amazon, Google, and Meta have all announced layoffs affecting tens of thousands of tech employees. Bay Area-wide, more than 57,000 tech employees alone were laid in Q1 2023. An increasing number of companies have made sweeping adjustments toward a more remote/hybrid-first work culture, with Google Cloud’s recently-announced desk-sharing program as a notable example.

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 2023
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 2023
Figure E2. Owner vs. Tenant Occupancy, Silicon Valley, Q1 2023