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Office Insight

United States | Silicon Valley, CA

Report | Silicon Valley Office Insight - Q4 2016

Summary

For the first time in six years, quarterly occupancy growth took a dip across Silicon Valley, though 2016 year-to-date absorption remained in positive territory and 2017 looks promising. Over the next 12 months, we expect to see more than 2.5 million square feet of gross positive absorption as several big tech players occupy their respective campuses, with current market conditions continuing to point towards growth.

Even with leasing numbers cooling a bit to end the year, investors continue to show interest in the market's real estate. Sales volume has remained steady over the past four quarters with an overall average settling in at $400 per square foot and international investors are expected to become even more active next year.

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