SAN JOSE, CA (CROWN) – A last analysis It reveals that sales of commercial real estate in Silicon Valley rose in the last quarter.
Recent analysis from the Joint Venture Silicon Valley Institute for Regional Studies shows an increase in investment activity between July and September, driving sales of commercial real estate to a total of $6.3 billion – the highest level since 2015.
Overall, the report reveals that vacancy rates continue to remain at “high levels”, widening the gap slightly from pre-pandemic levels.
Several projects that were due to be completed in late 2020 have been postponed due to the building materials pandemic and labor shortages.
As a result of the pandemic, commercial rental activity in 2020 was 57% of the previous year’s total (in square feet).
Despite all this, Silicon Valley still has the lowest job vacancy rates of any major market across the United States.
Commercial leases in the fourth quarter have already outpaced last year’s numbers – according to the report, the number of lease transactions is trending toward rental numbers for 2018 and 2019.
There were more than 650 commercial lease deals last quarter, compared to 480 in 2020 and 880 in 2019.