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.
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 2020
- 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
- Table C3. Office Vacancy by Proximity to Transit, Q1-Q3 2020
- Figure D1. Quarterly Rents by Sector, since 2010
- Figure D2. Annual Average Rents by Sector, since 2000
- Table D3. Office Rents by Proximity to Transit, Q1-Q3 2020
- Figure E1. In-Progress Office Space & Share Pre-Leased to Tech Firms, Bay Area, Q3 2020