Tech Boom: Silicon Valley Leading for Best Office Market in Years
Source: mercurynews.com | Re-Post MNM Partners, LLC 10/26/2018 –
SAN JOSE — Silicon Valley’s tech boom has fueled an appetite for office buildings that is poised to propel the region to its best leasing market in years, new research reports indicate.
The demand for office space appears to exceed the supply of completed properties, according to separate reports from commercial realty firms Cushman & Wakefield and Colliers International. Silicon Valley is defined as Santa Clara County and Fremont.
“Demand is outpacing supply as activity soars for entitled or under-construction properties,” said Lena Tutko, research manager for the San Jose office of Colliers International, in her assessment of the commercial real estate market in Silicon Valley for the third quarter that ended in September. Tutko added, “We are neck and neck with 2017 for leasing activity as of right now.”
The top three office leasing deals — all involving tech or telecommunications firms — of the July-through-September period were Roku, which leased 472,000 square feet at San Jose’s Coleman Highline complex; Splunk, which rented 319,000 square feet at 700 Santana Row in San Jose; and Nokia, which leased 231,000 square feet at 520 Almanor Ave. in Sunnyvale.