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Silicon Valley Market Reports

Silicon Valley Office Market

Average FS Asking Rent (Price/SF)     
          $4.12
Availability Rate (%)            12.0
Net Absorption (SF)      1,046,952

The Silicon Valley office market shows no signs of slowing down, as a number of large leases were again signed throughout the South Bay during the second quarter of 2018. Major tech companies continue to drive the market forward as they expand their footprints within the Valley. After posting its highest net absorption since the third quarter of 2015 just months ago, the market topped itself again with 1,046,952 square feet in second-quarter 2018. Gross absorption was once again substantial at 4.3 million square feet.

Silicon Valley Industrial/Warehouse Market

Industrial

Average NNN Asking Rent (Price/SF)      
       $1.26 
Availability Rate (%)          2.9%
Net Absorption (SF)     400,849

Warehouse

Average NNN Asking Rent (Price/SF)           $.93
Availability Rate (%)             3.8%
Net Absorption (SF)      -10,513

The Silicon Valley industrial market continued its momentum in the second quarter of 2018, posting its highest net absorption since 2015 at 400,849 square feet. Gross absorption remained healthy at 836,866 square feet. Availability continued to drop in the second quarter, ending at 2.9%. Average asking rates continued to climb, hitting another historic mark at $1.26/SF.

Silicon Valley R&D Market

Average NNN Asking Rent (Price/SF)       $2.04
Availability Rate (%)       10.6%
Net Absorption (SF)   -33,418

The Silicon Valley R&D market saw significant improvement through the second quarter of 2018. Leasing activity during the quarter was strong, consisting of one large direct deal and several lease renewals. However, net absorption remained in negative territory for the 10th straight quarter at negative 33,418 square feet. The largest negative contribution stemmed from Theranos vacating a large amount of space in Newark following the recent indictment of their CEO. Gross absorption saw significant growth at 3.2 million square feet, up 900,000 square feet from the prior quarter. Availability decreased slightly to 10.6%, and the average asking rate increased $0.03/SF to $2.04/SF.

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Silicon Valley Office Market Report
2Q18
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Silicon Valley Industrial Market Report
2Q18
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Silicon Valley R&D Market Report
2Q18
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