SAN JOSE, Calif. (KRON) – A recent analysis reveals that commercial real estate sales in Silicon Valley soared in the last quarter.
The latest analysis from the Institute for Regional Studies of the Joint Venture Silicon Valley shows that increased investment activity between July and September drove the volume of commercial real estate sales to a total of $ 6.3 billion, highest since 2015.
Overall, the report finds vacancy rates continue to remain at “high levels,” slightly widening the gap from pre-pandemic levels.
Many projects slated for completion in late 2020 have been delayed due to the building materials pandemic and labor shortages.
Due to the pandemic, commercial rental activity in 2020 was 57% of the previous year’s total (in square feet).
Despite all of this, Silicon Valley continues to have the lowest vacancy rates of any major U.S. market.
Commercial leases in the last quarter have already eclipsed last year’s numbers – according to the report, the number of lease transactions is close to 2018 and 2019 numbers.
There were over 650 commercial lease transactions in the last quarter, up from 480 in 2020 and 880 in 2019.