MR_SJC_17Q2_ALL_175x227Continued Demand Drives New Occupancy

The first half of the year came to a close and the Silicon Valley has maintained momentum. With job reports still topping the charts, the unemployment rate in Santa Clara County has dipped to 3.0 percent, down from 3.5 percent one year earlier. During the second quarter of 2017 Silicon Valley start-ups raked in more than $3.6 billion from VC investment across 119 deals, a strong increase from first quarter reports. Internet took claim to the highest percentage of investments, collecting $1.7 billion of all venture capital invested in the region this period, according to data from PricewaterhouseCoopers.

Leasing activity was strong in the Silicon Valley during the second quarter, gross absorption for all product types totaled 7.6 million square feet. This amount of tenant demand is a 55.9 percent increase quarter over quarter. During the second quarter, the Silicon Valley measured an increase in total occupancy, at 2.7 million square feet of positive net absorption. Total availability sits just above 29 million square feet in the Silicon Valley, this translates to an overall availability rate of 8.4 percent, 88 basis points higher than one year earlier.