Silicon Valley Commercial Space

Q3 2019

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Silicon Valley is continuing to develop more new commercial space, and there has been a resurgence of R&D development within the region. Year-to-date completions have already exceeded 2018 totals, and many of those developments were preleased at the time of delivery. The square footage of two warehouse/distribution developments completed in Fremont combined was greater than the industrial development in any other quarter over the past 21 years. The completion of these two new industrial developments (and because neither was preleased at the time of delivery) contributed to a sharp rise in industrial space vacancy rates in Q3, which hit a four-year high. Increases in asking rents for Silicon Valley office space may have been affected by displaced downtown San Jose tenants and the growing demand by life science tenants. Overall rate increases, however, have been tempered by lower-end space that tends to sit on the market longer.

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 2019
• Figure A4. Quarterly Development In-Progress, since 2000
• Figure B1. Quarterly Vacancy Rates, since 2010
• Figure B2. Annual Vacancy Rates by Sector, since 2000
• Table B3. Office Vacancy by Proximity to Transit, Q3 2019
• Figure C1. Quarterly Rents by Sector, since 2010
• Figure C2. Annual Average Rents by Sector, since 2000
• Table C3. Office Rents by Proximity to Transit, Q3 2019
• Figure D1. In-Progress Office Space & Share Pre-Leased to Tech Firms, Bay Area, Q3 2019