New space delivers amidst market softness, creating opportunity for premium product
Silicon Valley continues to face ongoing pandemic challenges, yet signs of optimism are emerging in the first quarter. On a positive note, quarterly lease count is up 47.0% from Q4 2020. Still, in terms of total square footage, activity is down by roughly 10.0% with just 400,000 square feet (sf) leased this quarter as companies remain hesitant to make real estate decisions given ongoing uncertainty. With an active development pipeline, inventory grew by 17 million square feet (msf) to start the year. This surge of new space on the market presents a prime opportunity for tenants to explore top-tier product.