Q4 2019 Silicon Valley Market Report - Office

Leasing activity has continued to remain strong throughout the 4th quarter with over 2.5 million square feet of transactions signed. With well-funded tech companies and pre-IPO unicorns flooding into the valley, vacancy has continued to drop even with an ample amount on new product on the market. With regards to net absorption, we saw 468,215 sf during this quarter. This number had major contributions from two major submarkets including Sunnyvale and Santa Clara. Sunnyvale had major amounts of preleasing from finished developments and Santa Clara inked 3 major leases totaling over 500,000 sf. Sublease activity accounted for a quarter of the overall absorption due to Airbnb and Nuvia. With major projects in the Silicon Valley pipeline, there seems to be now slowing down with office leasing soon.