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Silicon Valley Market Reports

Silicon Valley Office Market

Average FS Asking Rent (Price/SF)     
          $4.28
Availability Rate (%)          13.15%
Net Absorption (SF)      668,134

The Silicon Valley office market kicked off the year with a strong first quarter, continuing the momentum from the end of 2017. The year started off with the signing of two big leases at Irvine Company's recently completed Santa Clara Square, with Analog Devices taking two buildings and Hitachi leasing another building. This kicked off a quarter of high deal volume throughout Silicon Valley. Net absorption hit 668,134 square feet in the first quarter of 2018, the highest it has been since the third quarter of 2015. Gross absorption hit a record 4.7 million square feet, marking the largest single quarter since 1999.

Silicon Valley Industrial/Warehouse Market

Industrial

Average NNN Asking Rent (Price/SF)      
         $1.24 
Availability Rate (%)          3.24%
Net Absorption (SF)        43,863

Warehouse

Average NNN Asking Rent (Price/SF)            $ .99
Availability Rate (%)            3.44%
Net Absorption (SF)      -139,224

The Silicon Valley industrial market finished in positive territory for the first time since 2015, as the market posted 43,863 square feet of net absorption. Gross absorption maintained the trend of the last two quarters, in which this figure exceeded 1.0 million square feet, with 1.3 million square feet overall. The availability rate for Silicon Valley decreased by 1.5% to 3.2% during the first quarter of 2018. Average asking rates continued to climb, up $0.10/SF over the quarter to $1.24/SF, an historic high.

Silicon Valley R&D Market

Average NNN Asking Rent (Price/SF)       $2.01
Availability Rate (%)    10.96%
Net Absorption (SF) -434,466

The Silicon Valley R&D market remained relatively flat to start the year. Availability ticked up slightly by 0.1% to 11.0% overall, and the average asking rate increased by $0.04/SF to get back over the $2.00/SF mark. Activity remained steady in the first three months of 2018, with a good number of renewals and owner/user sales. Net absorption was in the same negative territory it has been for the past few quarters, down 434,466 square feet. Gross absorption was up slightly from the previous quarter at 2.4 million square feet.

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Silicon Valley Office Market Report
1Q18
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Silicon Valley Industrial Market Report
1Q18
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Silicon Valley R&D Market Report
1Q18
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