New Supply Drives Occupancy Gains in 2017
The Silicon Valley economy continues to experience growth as the fourth quarter came to a close. Job reports indicate an increase in hiring as the unemployment rate decreased to 2.7 percent in November, the lowest in over ten years. During the fourth quarter of 2017 Silicon Valley start-ups raked in more funding totaling $2.6 billion across 147 deals, up from $2.2 billion recorded in the previous quarter, according to data from PricewaterhouseCoopers.
Leasing activity was robust in the Silicon Valley during the fourth quarter, gross absorption for all product types totaled 7.2 million square feet. Tenant demand is up 24.7 percent quarter-over-quarter. During the fourth quarter, the Silicon Valley measured an increase in total occupancy, at 1.3 million square feet of positive net absorption. Total availability sits just above 30.0 million square feet in the Silicon Valley, translating to an overall availability rate of 8.8 percent, 63 basis points higher than one year earlier.
Have future reports delivered directly to your inbox - click here to subscribe to this and other regional e-mail delivery lists.