This week’s list of Office and R&D Leases in San Jose accounts for more than 1.6 million square feet signed in 2023.
Of the 30 leases ranked, 47% were for a new lease and within the 53% of renewals, one was a sublease, one an expansion and one a contraction. This List includes San Jose office and R&D leases signed in 2023. Some leases on this List may also include warehouse and/or logistics space but were classified as R&D leases by one or more brokerages.
The largest lease for 230,506 square feet was by Santa Clara Valley Medical Center, followed by the IRS’ renewal of 132,940 square feet owned by the Carlyle Group.
BioMérieux signed two leases last year on Baytech Drive for 84,516 and 51,711 square feet.
“Office in San Jose, in terms of asking rates, has finally started to come down a bit on a direct basis, along with concessions from landlords,” said Ryan Adlesh, first vice president at CBRE and member of CBRE’s National Tech and Media Practice Group. “From an R&D perspective, it continues to be pretty steady, driven a lot by heavy power requirements as well as the driver of AI in the market. Anything from data centers to chip manufacturers are affected by the AI ecosystem.”
In general, AI is the big driver for not only San Jose, but the entire Silicon Valley region.
“Looking back, in the past social media has been a big driver of leasing in our market, solar and battery power or autonomous vehicles,” said Matt Taylor, executive vice president at CBRE. “The companies that are fueling the growth in Silicon Valley are different industries that have been doing it historically, but they all have the same criteria, fast-moving high technology that needs a lot of infrastructure and power. Those are the groups that are really driving demand.”
“In this region specifically, infrastructure is the most important piece to the success of your building. Whether that’s power or lower loading, anything that a company is going to look at and say ‘Can I do advanced cutting edge work in this building?’
