Q1 2021 Silicon Valley Office Occupiers Guide

Q1 2021 showed positive indicators for the Silicon Valley office market. Return to office plans, and hybrid work models began to take shape as vaccine rollouts gained momentum. Many companies target return to office for Q3-Q4. Silicon Valley recorded an overall increase in average asking rates of $0.29/sf/ month, quarter-over-quarter. Vacancy rates continued to increase, recording 12.30% overall. Fremont/Newark (18.60%), Palo Alto (17.00%), and Santa Clara (16.90%) posted the region’s highest vacancy rates, contributing to an increase in overall vacancy rates quarter-over-quarter.

The market recorded 22,478 SF of negative absorption, an improvement from Q4 2020, which posted 686,762 SF of negative absorption. Notable moveins included: Uber (171,000 SF at 680 E Middlefield), Facebook (228,000 at 6800 and 6900 Dumbarton Circle), and Waymo (170,000 SF at 680 E Middlefield).