Silicon Valley First Quarter 2013 Office & Industrial Market Updates
Silicon Valley First Quarter 2013 Office & Industrial Market Updates
The Silicon Valley commercial real estate market consists of the following cities: Campbell, Los Gatos, Cupertino, Saratoga, Fremont, Milpitas, Gilroy, Morgan Hill, Los Altos, Mountain View, Palo Alto, San Jose, Santa Clara and Sunnyvale. Colliers International just released first quarter 2013 statistics.
Silicon Valley is slowly but cautiously returning to business as usual with retail sales on the rise, unemployment rates falling into the single digits and housing prices up 26.1%.
Silicon Valley Commercial Real Estate Office Update
Silicon Valley office market was somewhat sporadic but recorded 1.37 million square feet gross absorption (represents 23.3% drop from previous quarter) first quarter 2013. Average starting rents for office rates jumped 12.2% to $3.12 per square foot.
Silicon Valley Commercial Real Estate R&D Update
Silicon Valley R&D activity picked up and recorded 2.13 million square feet of gross absorption in 1Q13, a 15.4% increase over the previous quarter. Average starting rate of R&D leases was $1.31 per square foot NNN. The industrial sector posted the largest gain, averaging $0.72 per square foot NNN in 1Q13, representing a 20% increase over the previous quarter.
