Silicon Valley Office Market is Back, Hotter Than Ever!

by Angela S. Hwang, on May 11, 2021 2:34:48 PM

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In case you haven’t been reading the news, the Silicon Valley office market is hotter than ever! 

Erik Hayden, our Founder, recently wrote for Forbes about taking a long view when it comes to commercial real estate, and these latest office market developments further prove his points. 

Think the office is dead? Not so fast...

  • With a head-turning headline Silicon Valley Shopping Spree Tops $1 Billion in Four Weeks with San Jose Deal, the Mercury News reported:  “The prospects for the office sector — despite rising vacancy rates in the wake of the coronavirus outbreak — are particularly strong in Silicon Valley, experts say.” In fact, the article further quotes a source saying that “all the talk of an exodus from Silicon Valley” couldn’t be farther from the truth. 
  • Furthermore, Silicon Valley Business Journal reported that “businesses leased more space in Silicon Valley in April than they had in any of the previous three full quarters. Companies signed leases last month for a combined 739,414 square feet of office space, according to real estate brokerage CBRE. That was nearly three times the amount of space leased in the first quarter.”
  • “Applied Materials (a global leader in materials engineering solutions with more than $17 billion dollars in annual revenue) has bought two Sunnyvale research buildings, an indication that the tech titan has yet to quench its thirst for Silicon Valley buildings that it someday could redevelop as modern offices.”  The Mercury News 
  • “The Sunnyvale Planning Commission has approved a complex of two office buildings that together would total 500,000 square feet — enough space to potentially accommodate 2,500 workers. The buildings would be a key component in the CityLine Sunnyvale mixed-use development of offices, shops, restaurants, and homes in downtown Sunnyvale.”  The Mercury News 

Did you know? Our very own Icon/Echo project will feature 300 units of multifamily apartments and 420,000 SF of office space. Contact us today to learn more!

 

 

 

 

 

 

 

 

 

 

 

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Topics:Opportunity ZonesSan JoseSilicon Valleyoffice