Numerous New Tenant Requirements Bode Well For Remainder Of 2013
SAN JOSE, Calif., July 11, 2013 /PRNewswire/ — Silicon Valley's commercial real estate sector maintained steady activity in Q2 2013 with 6.1 million square feet of office, R&D, industrial and warehouse transactions during the period.
Office and R&D buildings represented the lion's share of activity with over 80% of the Valley's gross absorption in Q2 2013. Santa Clara, Sunnyvale, and San Jose accounted for 60% of the activity for these two product types.
Overall for the quarter, the change in total occupied space (net absorption) increased over 2.6 million square feet, which was the highest amount since Q1 2006. Not only is the rate of space being vacated slowing down, new developments that were preleased in 2012 continue to be completed and occupied. Also, net absorption for the Silicon Valley's office sector totaled 825,000 square feet for the quarter, its highest amount since Q4 2001.
Jeff Fredericks, SIOR, managing partner of Colliers' Silicon Valley office, commented, "The Silicon Valley's economic engine is turning and our commercial real estate market is reflecting that with very encouraging statistics."
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