Quarterly Report

Silicon Valley Commercial Space

Q2 2019

The amount of commercial space under construction in Silicon Valley has continued to rise, even as new buildings have been completed. Demand for all types of space – office, industrial, and R&D – has driven this continued development and brought vacancy rates down, especially in locations near public transit. Commercial space is in such demand that there was a significant amount of speculative development of industrial space under construction at the end of the second quarter. Due to the high amount of commercial space under development, deliveries through the second half of 2019 are expected to be substantial despite the relatively few large buildings completed over the past several quarters compared to the 2015-2017 period.

Charts/tables featured in this report: