January 11, 2008
According to research put out by CBRE’s research team, overall vacancy rates in the Bay Area increased from 8.6% to 9.7% in the fourth quarter. The peninsula and San Francisco have remained strong while the East Bay has suffered some.
In the south bay the lowest vacancy rates were in Mountain View, Palo Alto, and Cupertino, and Sunnyvale had the highest at 17%. Sunnyvale’s number is somewhat skewed however by the large deliveries of new office space which are occurring.
In Sunnyvale, there is roughly 3M square feet of Class A office being planned or currently under construction. The largest project is Moffett Towers, with other projects at Almanor, Sunnyvale Town Center, and on Java Drive.
While the overall economy remains healthy in Silicon Valley, factors influencing residential real estate, commercial and residential lending, and the general psychological affect a looming recession might have will likely continue into the near future may cause some companies to possibly temper their future growth forecasts.
- Signs of Life at Moffett Towers in Sunnyvale
- Silicon Valley Rent, Vacancy, and Unemployment
- Weakness in Rents Beginning to Show
- Bordeaux Centre Taken By Lender
- RREEF Portfolio Under Distress