2020 Q3 San Jose-Silicon Valley Market Research Report

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Silicon Valley Leasing Activity Returns Despite Increased Vacancy

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Silicon Valley’s commercial property markets are continuing to adapt to a post-COVID-19 economy. For the third consecutive quarter occupancy losses amounted to 2.1 million square feet and more than 4.5 million square feet year-to-date, wiping out all occupancy gains seen in 2019. The bulk of the negative net absorption can be ascribed to the R&D sector, which led in occupancy losses with 1.9 million square feet. Roughly 25.0 percent of these occupancy losses stem from renovation projects, which are temporary in nature and signal confidence in future demand. Despite the continued upward trajectory in vacancy, gross absorption, which is defined as non-renewal leasing and user-sale activity, rebounded to 4.1 million square feet, up 64.5 percent from Q2 2020 but down 16.5 percent year-over-year.

 

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2020 Q3 San Jose-Silicon Valley Market Research Report

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Lena Tutko

Senior Research Manager

Silicon Valley

Lena is the Senior Research Manager for Colliers International covering the Silicon Valley and San Francisco Peninsula markets. With more than 10 years of experience in commercial real estate research, she is passionate about providing strategic market insights that help move the business forward. Lena leads a team of research analysts and is enthusiastic about maintaining the highest level of data integrity and transforming data into knowledge.

Lena began her career in commercial real estate with Real Capital Analytics, where as Senior Research Manager she led cross-functional teams in Silicon Valley, New York and London. Prior to joining Colliers International, she was a Market Research Manager at Omnicell Inc., where she led research initiatives for the company’s Global Automation and Medication Adherence business segment. Lena holds a B.A. in Economics from the University of California, San Diego.

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Reed Payne

Executive Managing Director

Silicon Valley

As Executive Managing Director of Colliers International’s Silicon Valley office, my role is to oversee and continually diversify the Colliers presence within the Silicon Valley, one of the most strategically important markets in the world.  I work closely with the 80 brokers in our office to optimize the brokerage services we provide to our investor, owner, and occupier clients.   

I enjoy my work very much, and deeply value the trust our clients put in us to solve their real estate challenges.  At Colliers, I work with many of the most established brokers in our region, as well as newer brokers as they develop their careers.  It gives me great pride to know that all our agents can rely on me to help them continue to be successful.  I believe the Colliers entrepreneurial culture serves clients well because it fosters a client-focused initiative very similar to the enterprising energy that our clients put into their own businesses. 

I joined Colliers in May 2018, bringing with me over 36 years of commercial real estate experience.     Immediately prior to joining Colliers, I worked at Kidder Mathews as the Executive Vice President overseeing brokerage services for Northern California and Nevada.  Before Kidder Mathews I ran the CBRE Silicon Valley Private Client group.  I began my brokerage career two weeks after graduating from CAL Berkeley with Coldwell Banker (now CBRE) as an Industrial salesman in their Oakland office.  Over the years, I have handled over $1.1 billion in Sales and Lease transactions in the office, R&D, industrial and retail sectors.  Additionally, I have held numerous management and senior management positions with CBRE, Transpacific Development Company, Insignia ESG and Kidder Mathews.

I live in Menlo Park with my wife of 30 years, Anne Kerwin Payne.  Our children Weston and Madelyn are now raised.  In my spare time, I love to play golf, ski, and hike.  Anne and I support a number of community organizations, especially the Bay Area Women’s Sports Initiative (BAWSI) and CAL Athletics.  I also serve on the board of the Silicon Valley Brokers Association and am an active SIOR.

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