Q1 2021 Silicon Valley Research and Development Occupiers Guide

The Silicon Valley R&D market rental rates experienced an increase quarter-over-quarter, from $2.43/sf/month to $2.50/sf/month. Vacancy rates climbed, recording a 123-bps increase quarter-over-quarter, largely due to tenants relocating out of market. Notable moves include Boston Scientific vacating its North San Jose campus, and VMware reducing its Palo Alto footprint.

Leasing demand and venture capital funding, as indicators for overall market sentiment, saw increases quarter-over-quarter. A 22% increase quarter-over-quarter in leasing demand and a 112% increase in venture capital funding mark promising signs of healthy market movement.