Quarterly Report

Silicon Valley Commercial Space

Status of Commercial Space During the COVID-19 Pandemic

Q2 2020

The second quarter of 2020 has been a time for businesses to reevaluate their needs for what will become the new normal, while property owners take a wait-and-see approach to better understand what future workplaces will look like. While uncertainties abound, based on what we know of the status of commercial space in Silicon Valley there are several indications that may define the near-term outlook: leasing activity has been muted – with much concentrated in renewals, more sublease space has come onto the market, current construction projects have continued with some delays while new speculative development has been put on hold, and vacancy and rental rates have been highly subject to fluctuating market conditions. These trends have the potential to linger until the health crisis subsides.