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

Silicon Valley’s Office/R&D Markets Still Dominant in 2018 – Growth Driven by the Tech Sector

SAN JOSE, Calif., January 22, 2019 – Cushman & Wakefield’s year-end office and R&D market reports for Silicon Valley revealed a strong annual performance for both sectors overall in 2018. As one of the world’s most dominant and innovative tech markets, these two real estate sectors combined to hit 2.5 million square feet (msf) of positive net absorption, or occupancy growth, across the valley in 2018. After a soft first half plagued by deep occupancy losses, the R&D sector quickly shifted course in the second half with red hot growth. Meanwhile, with gains in all four quarters, the office market had one of its strongest occupancy showings on record. Julie Leiker, Cushman & Wakefield’s Market Director for Silicon Valley, said, “The office sector achieved 1.8 msf of occupancy growth in 2018, nearly doubling its growth totals for both 2017 (960,000 sf) and 2016 (973,000 sf). Putting this robust figure into [...]

By |2019-01-22T15:30:27-04:00January 22nd, 2019|In the News|0 Comments

Silicon Valley’s Office/R&D Sectors Report Significant Growth in Q3 combining for over 1.9 MSF Net Absorption

Office Market may be Headed for Record Year, while R&D Market Rebounds SAN JOSE, Calif., October 15, 2018 – Cushman & Wakefield’s newly released office and R&D market reports for the third quarter of 2018 showed strengthening occupancy growth, with both sectors combining for more than 1.9 million square feet (msf) of positive net absorption. The R&D market contributed over 1.3 msf of growth with the office market adding another nearly 600,000 sf in Q3. Under the strain of two quarters of lackluster performance, the R&D sector broke through in the third quarter with a surge in deal velocity, a stabilization in net absorption and increased rents. And in the office sector, after three standout quarters it seems apparent that 2018 will not only outperform 2017 but may rival the record-setting growth of 2015. Julie Leiker, Cushman & Wakefield’s Market Director for Silicon Valley, said, “Year-to-date office net absorption has [...]

By |2018-10-15T16:33:52-04:00October 15th, 2018|In the News|0 Comments