Q3 2022 Silicon Valley Office Occupiers Guide
Not since the Great Financial Crisis of 2008-2009 have owners had to navigate such a challenging financial landscape. Landlords in the Silicon Valley office market are no exception. As vacancies abound, the disruption to their cash flow from an emptying rent roll may cause them to refinance, an unfavorable option with the rise of interest rates. Landlords were initially resistant to lowering asking rates with well capitalized landlords in a better position to weather the current storm. As the full-scope of the paradigm shift in remote work is still coming into focus, landlords are becoming more responsive to tenant demands as they struggle to meet their bottom line and attract tenants. It is an optimal time for tenants to lobby for more concessions including tenant improvements, free rent, and even lower base rates.