Leasing demand declines again as market activity drags amid ongoing pandemic concerns
As the Silicon Valley continues to experience effects of the COVID-19 pandemic, office fundamentals have slowed considerably. In addition to pandemic concerns, the region also grappled with widespread wildfires over the quarter. Total thirdquarter leasing activity was a little over 500,000 square feet (sf), 36.3% of what was leased last quarter and 65.3 % when compared to Q3 2019’s total of 1.5 million square feet (msf). Leases under 20,000 sf comprised most of the minimal activity this quarter, as companies held off on committing to larger spaces – a vast change from pre-pandemic quarters where large tenants were rapidly taking up space. Though currently challenged, the Silicon Valley market is poised to survive and emerge resilient due to its foundation of world-class talent and jobs and its position as a leading tech market.