San Jose's Demand for Office Remains Strong
by Erik Hayden, on Oct 26, 2021 10:59:57 AM
Why San Jose?
It’s a question I’m asked a lot by investors in the course of their due diligence. What makes Urban Catalyst think that, of all the cities around the country, San Jose has a strong demand for office?
The answer: We listen to the experts—experts like Colliers, a global commercial real estate firm.
A preview of Colliers’ third-quarter 2021 report on the region finds Silicon Valley’s office market is making a strong comeback from the economic obstacles created by the coronavirus, the Mercury News’ George Avalos reported.
The average monthly rental price of $5.35 a square foot is “the highest on record” in Silicon Valley, Lena Tutko, Colliers research director, said.
Colliers considers the Silicon Valley office market to be composed of Santa Clara County and Fremont.
Colliers report regarding commercial real estate in Silicon Valley in Q3
Sean Toomey, a Colliers senior vice president, said: “Silicon Valley is absolutely emerging from the doldrums of the pandemic and stay-at-home mandates. This is further noted by increases in traffic on our Silicon Valley freeways, ridership on Caltrain, and in tenant touring as many companies prepare for a projected January return-to-work environment.”
Other positive signs noted in the Mercury News article are:
- An increase in rent in a variety of commercial types of space—office, research and industrial space.
- There’s been a decrease in vacancies for industrial and research space.
- There’ve been more than 2 million square feet of office leasing transactions for two consecutive quarters.
Why San Jose? Ask the experts at Colliers; they’ll tell you.
Remember that the potential 10% reduction of capital gains taxes disappears on Jan. 1, 2022.
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