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Office Insight

United States | Silicon Valley, CA

Report | Silicon Valley Office Insight - Q1 2011

Summary

The technology industry is driving economic growth in the region, with many prominent firms reporting increased profits during the first quarter, a precursor to future hiring. Venture capital investment is on the upswing, most notably in the software investment category. This is leading to increased rents and reduced availability for top quality space. Class A rents in particular are expected to increase rapidly as a result of robust activity.
The market has shifted to favor landlords given the large amount of Class A product being leased. Developers are revisiting proposed projects that were put on hold during the recession, and groundbreakings could begin later this year.

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