CBRE And Colliers Release Office Market Reports
Commercial real estate firms CBRE and Colliers International have released varying reports on Silicon Valley’s office, research and development and industrial markets.
Despite their differences, both reports have found that the area is experiencing high vacancy rates and space availability for the office industry. This comes as no shock as millions of people continue to work from home.
According to the Colliers report, Silicon Valley’s net absorption was negative for the third consecutive quarter, equating nearly 198,000 square feet.
Despite this, leasing activity during this time saw an increase due to large office projects being completed, totaling 983,303 square feet.
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As of the end of the third quarter, Colliers is tracking 10.8 million square feet that is under construction.
CBRE’s more grim report found that office leasing dropped by 73% during the third quarter in comparison to the same time last year.
Additionally, gross absorption was 680,883 square feet, the largest since the dot-com bubble burst of the early 2000s. Even more, occupancy losses reached nearly 677,000 square feet, which marks the worst performance since the Great Recession of 2007.
However, CBRE also noted that the office market is expected to make a rebound as demand for office space grows.
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