SAN JOSE, Calif. (KRON) – A recent analysis shows that commercial real estate sales in Silicon Valley skyrocketed in the last quarter.
The latest analysis by the Institute for Regional Studies of the Silicon Valley joint venture shows that investment activity increased between July and September and the sales volume of commercial real estate rose to a total of 6.3 billion US dollars – the highest level since 2015.
Multi-family rents in Silicon Valley will rise beyond 2020
Quarterly report of the joint venture “Silicon Valley Commercial Space” Q3 2021. Despite reports of emigration from the Bay Area, many remain in California
Overall, the report shows that vacancy rates remain at “elevated levels”, slightly widening the gap from pre-pandemic levels.
Many projects that were scheduled to be completed by the end of 2020 were delayed due to pandemic building materials and labor shortages.
As a result of the pandemic, commercial letting activity in 2020 was 57% of the total area of the previous year (in square meters).
Despite all of this, Silicon Valley still has the lowest vacancy rates of any major US market
In the last quarter, commercial leases overshadowed the previous year’s figures – according to the report, the number of rental transactions is moving in the direction of the rental figures for 2018 and 2019.
There were over 650 commercial leases in the last quarter, compared to 480 in 2020 and 880 in 2019.