Silicon Valley submarket office rent outliers from 2013-2018
The difference in rents between higher- and lower-priced submarkets steadily shrank from $6.27 in 2015 to $5.71 in 2018.
April 04, 2019
- The above box chart illustrates the range of average office asking rents by submarket from 2013 to 2018. The red box contains 50% of Silicon Valley submarkets, with the rest of the submarkets located outside of the red box either in the top 25% or bottom 25%.
- Overall, the median rent for all the submarkets rose from $2.78 per square foot in 2013 to $3.93 per square foot in 2016, and then fluctuated within the mid-$3 range in the last two years.
- Higher-priced submarkets, such as Palo Alto and Mountain View, stayed at a relatively stable and high level in recent years largely because of tight space availability and strong demand.
- At the same time, submarkets with generally lower-rents like Milpitas and Fremont/Newark that have more availability increased significantly as more companies locate to those markets.
- As a result of these trends, the difference in rents between higher- and lower-priced submarkets steadily shrank from $6.27 in 2015 to $5.71 in 2018.
Source: JLL Research