Silicon Valley office transaction activity on track to outperform previous 3 years
The third quarter added $1.9 billion in office investment sales to Silicon Valley, the second highest quarterly sales volume in the last ten years.
October 09, 2019
- The third quarter added $1.9 billion in office investment sales to Silicon Valley, the second highest quarterly sales volume in the last ten years. Total year-to-date office sales volume reached approximately $5.4 billion, surpassing each of the previous 3 years with the potential to eclipse 2015.
- Santa Clara/Sunnyvale led the market in sales transactions this quarter, representing 45% of total sales. Google purchased 6 former Yahoo buildings in Sunnyvale (totaling approximately $1 billion).
- Thus far in 2019, the investor composition still favors the user/other category representing 39% of all buyers. Private and institutional investors still represent a large share, both over 20%, with cross-border investors representing almost 14% (compared with 6% in 2018).
- Google ($2.9 billion) has been the most prominent investor in Silicon Valley thus far through 2019, followed by Jay Paul Company ($607 million) and Sand Hill Property Company ($512 million).
Source: JLL Research