Q2 Market Reports Show Leasing Ramps Up as Vacancy Drops
In Cushman & Wakefield’s: Marketbeat Report for Q2 2014, high-tech leasing was robust in Silicon Valley with the North San Jose sub-market capturing the three largest leases in the quarter. The report noted that North San Jose is poised to attract active requirements in the market, offering a concentration of repositioned assets, large blocks of available space and a lower cost alternative to other northern Silicon Valley sub-markets. To read the report, click here. Cassidy Turley’s Q2 2014 report noted vacancy in Downtown dropped to 17.3% (from 21% at end of Q1 2013). In addition, the report noted San Jose ranked #2 with 1.4 msf of office space absorption, just behind New York City at 1.6 msf. To read the report, click here. Collier’s Q2 2014 reported San Jose had a 34.6% increase in office market activity, with Downtown closing seven of the ten largest office deals in San Jose. The report also noted that San Jose continues to lead Silicon Valley’s R&D sector, with North San Jose and the International Business Park realizing 70% of the new leasing activity. San Jose also led the way for the industrial sector during Q2 accounting for 60% of all new activity (an 11.1% increase from Q2 2013). New activity in San Jose’s warehouse sector increased 12.3% from Q1 2014, representing the sixth consecutive quarter that occupancy gain measured greater than 100,000 sf. To read the report, click here. For more information, contact John Lang, Chief Economist.