Quarterly Report

Silicon Valley Commercial Space

Status of Commercial Space Six Months Into the COVID-19 Pandemic

Q3 2020

In the third quarter of 2020 and with no end to the pandemic in sight, both Silicon Valley companies and commercial landlords remain in a holding pattern. Leasing activity has slowed noticeably, with a decline in both new market entrants and tenant expansions. Many tenants are renewing their leases, while others are putting sublease space onto the market. Given the impact of the pandemic on office demand, combined with fewer downtown-area amenities and weariness to use public transit, there has been a rise in vacant space near transportation nodes. Development seems to be continuing at a rapid pace for now (despite some pandemic-related construction delays), but uncertainties loom around longer-term projects.