SAN JOSE, California (KRON) — A recent analysis reveals that sales of commercial real estate in Silicon Valley have surged in the past quarter.
The latest analysis from the Joint Venture Silicon Valley’s Institute for Regional Studies shows that investment activity increased between July and September, pushing the volume of commercial real estate sales to a total of $6.3 billion — the highest since 2015.
Overall, the report reveals that vacancy rates remain at “higher levels”, slightly widening the gap from pre-pandemic levels.
Many projects due to be completed by the end of 2020 were delayed due to pandemic building materials and labor shortages.
Due to the pandemic, the commercial leasing activity in 2020 amounted to 57% of the previous year’s total (in square meters).
Despite all this, Silicon Valley still has the lowest vacancy rate of any major US market
Commercial leases in the past quarter have already surpassed last year’s figures – the number of lease transactions is moving towards the 2018 and 2019 lease figures, according to the report.
Last quarter there were more than 650 commercial lease transactions, compared to 480 in 2020 and 880 in 2019.