Silicon Valley Commercial Space

Q3 2018

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The pace of new commercial development in Silicon Valley remains brisk, and competitive preleasing activity is keeping developers optimistic. More than three million square feet of newly constructed office and industrial space was delivered to the market in the first three quarters of 2018, a third of that total in Q3 alone. Ongoing demand for Class A space (especially in the technology and life science clusters) is expected to keep the pressure on average rental rates and continue to push leasing activity down the 101 corridor toward San Jose. While Silicon Valley’s industrial space vacancy rate is at an 18-year low, average office space vacancy across the region has risen dramatically this year despite low vacancy rates in prime submarkets such as Palo Alto, Redwood City, Menlo Park, Mountain View, and Sunnyvale.

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, Q3 2018
• Figure A4. Quarterly Development In-Progress, since 2000
• Figure B1. Quarterly Vacancy Rates, since 2010
• Figure B2. Annual Vacancy Rates by Sector, since 2000
• Figure C1. Quarterly Rents by Sector, since 2010
• Figure C2. Annual Average Rents by Sector, since 2000
• Figure D1. In-Progress Office Space & Share Pre-Leased to Tech Firms, Bay Area, Q3 2018