Commercial Space, Q2 2023

Quarterly Report

Silicon Valley Commercial Space

Q2 2023

The second-quarter 2023 analysis from Joint Venture’s Institute for Regional Studies, in partnership with JLL Silicon Valley, shows a weakening attitude toward the market in the first half of 2023 as a barrage of layoff announcements enveloped the technology industry. With COVID-19 becoming a ‘non-factor’ in the office setting this year, many companies have already implemented return-to-work mandates, with hybrid three-day in-office policies becoming the de facto operating model. Despite this shift, the idea remains that a certain percentage of companies will no longer be interested in leasing space if their business operations can be (almost entirely) virtual.

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, Q2 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, Q2 2023
Figure E2. Owner vs. Tenant Occupancy, Silicon Valley, Q2 2023