Tech Giants Commit to the Valley
The first quarter of the year came to a close and Silicon Valley’s economy continues to thrive. While job reports indicate a slight decline in hiring, the unemployment rate remains at a healthy 3.0 percent. The Valley remains a hotbed for innovation and technological advancement, and demand for quality real estate for all product types is outpacing supply, substantiated by rising rents and accelerated construction.
The start of the year saw a number of marquis transactions from technology giants cementing their commitment to Silicon Valley, including Google, Facebook, and Amazon – resulting in a solid quarter in both commercial property leasing and sales activity.
Silicon Valley leasing activity reached 5.3 million square feet in the first quarter, up 8.2 percent year over year, from Q1 2017, but down 27.1 percent from the previous quarter. Silicon Valley experienced a strong 1.6 million square feet of positive net absorption, marking the fifth consecutive positive quarter.
Total availability sits at 29.9 million square feet, translating to an overall availability rate of 8.6 percent, 29 basis points higher than one year earlier.
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