Q4 2023: Silicon Valley Office Market Report
Office vacancy continued to increase in 2023, recording an increase from 14.1 percent to 17 percent. Availability jumped from 17.2 percent to 21.4 percent to close out the year. Although some major large block sublease transactions occurred in 2023, leasing activity was not strong enough to offset office tenants continuing to right-size or outright vacate space.
Notable large block subleases that contributed to a significant amount of negative absorption to conclude 2023 include Google (1.5+ million square feet, multiple locations), Meta (520,900 square feet, Menlo Park), and Roku (357,100 square feet, North San Jose). It’s important to note, however, that Google has opened their new 595,000 square foot HQ in Mountain View and has committed to in-office policies in the Valley. Google will also deliver an additional one million square foot campus at 200 W Caribbean Drive in Sunnyvale for more of their office employees.
Notable large block subleases that contributed to a significant amount of negative absorption to conclude 2023 include Google (1.5+ million square feet, multiple locations), Meta (520,900 square feet, Menlo Park), and Roku (357,100 square feet, North San Jose). It’s important to note, however, that Google has opened their new 595,000 square foot HQ in Mountain View and has committed to in-office policies in the Valley. Google will also deliver an additional one million square foot campus at 200 W Caribbean Drive in Sunnyvale for more of their office employees.