Tech Activity Drives Silicon Valley in Q2-19 as Outlook Remains Upbeat – Region Remains Shining Star in U.S.

Cushman & Wakefield Releases New Local Q2 Office-R&D Market Reports SAN JOSE, Calif., July 24, 2019 – Cushman & Wakefield’s research department has released their second quarter 2019 market report for the Silicon Valley office and R&D markets. Below are some of the key findings from these reports plus local expert commentary: R&D MARKET Silicon Valley’s R&D vacancy rate decreased significantly to 9.1% during the second quarter of 2019, down from 9.8% in the first quarter. After a negative growth start to the year, net absorption surged with 1.2 msf in the second quarter, bringing mid-year 2019 growth to 917,000 sf. Silicon Valley R&D Trends (4-quarter trailing average) “Fueled by Q2, year-to-date R&D net absorption in 2019 already nearly doubles the full 2018 absorption of 491,000 sf,” said Julie Leiker, Cushman & Wakefield’s Research Director for Silicon Valley. “During the second quarter, North San Jose led the Valley with 575,000 [...]

By |2019-07-24T14:23:39-04:00July 24th, 2019|In the News|0 Comments

Silicon Valley’s Office/R&D Markets Off to Slow Start in 2019 but Demand Strong and Large Transactions Coming

Owner Appetite Remains Hearty for Tech-Driven Real Estate SAN JOSE, Calif., April 22, 2019 – Cushman & Wakefield’s latest market reports for Silicon Valley’s Office and R&D sectors revealed a sluggish start to 2019, after having combined for a robust 2.85 million square feet (msf) of occupancy growth in 2018—largely stemming from the office sector. While the office market did continue its growth trend reporting another 269,000 sf of positive net absorption in the first quarter, the R&D sector finished with a negative 265,000 sf, leading to a virtual wash between the two sectors. Notably, both sectors maintain very healthy single-digit vacancies coupled with rent growth, while demand remains strong. “Historically, the early part of the year can start slow in the Silicon Valley commercial real estate market and that is exactly what happened in 2019,” said Julie Leiker, Cushman & Wakefield’s Market Director for Silicon Valley. She added, [...]

By |2019-04-22T12:15:53-04:00April 22nd, 2019|In the News|0 Comments

KBS Signs New 76,000-Square-Foot Lease with CDK Global at District 237

SAN JOSE, Calif. (April. 4, 2019) — KBS, based in Newport Beach, California, announced today the signing of a new lease for 76,410 square feet at District 237 in San Jose, California. CDK Global, a leading provider of IT and marketing solutions for automotive retailers, signed the new lease at 250 Holger Way. The properties are owned by KBS Real Estate Investment Trust II. District 237, formerly known as Corporate Technology Centre, is a newly renovated Class A office park comprised of five buildings and offering a total of 415,000 square feet of rentable space. Each property in the office campus, 350, 300, 250, 200 Holger Way and 100 Headquarters Drive offers full frontal views of Highway 237. KBS began exterior renovations at the office park in June of 2018, and the project was fully completed in March of 2019. The new renovations allow for individually dedicated outdoor space, [...]

By |2019-04-25T13:39:26-04:00April 4th, 2019|In the News|0 Comments

Exclusive: Why Cisco is Shedding Massive Milpitas Campus

By Janice Bitters, Silicon Valley Business Journal   Cisco Systems is letting go of more than 471,000 square feet of leased office space split between three buildings in Milpitas as it spends millions of dollars on its San Jose headquarters. The decision to shed the space by the end of the year has prompted landlord Hudson Pacific Properties to embark on a major overhaul of the property, known as Campus Center, at 115-155 N. McCarthy Blvd. near McCarthy Ranch. According to Cisco, the Milpitas departure is a move toward consolidating its Silicon Valley presence and beefing up its San Jose headquarters. “Our San Jose master plan includes investing in improvements and densifying our main headquarters campus by using Cisco technology and creating collaborative work environments to enhance innovation and productivity” “In alignment with that plan, the Milpitas McCarthy Ranch lease is no longer required for continued business operations.” City of San Jose building [...]

By |2017-04-04T12:45:01-04:00April 1st, 2017|In the News|Comments Off on Exclusive: Why Cisco is Shedding Massive Milpitas Campus