Despite largest office lease signed in Northern California, office space demand remains low

In Q4 2023, the largest office lease signed since the pandemic was executed as Walmart subleased over 718,000 square feet from Meta Platforms at the 4-building Crossman Campus in Sunnyvale. However, despite this major transaction, overall leasing activity in Silicon Valley ended the quarter at just 1.2 million square feet (msf). This brought 2023 total leasing activity to 3.6 msf, down from 4.2 msf reported in 2022. It should be noted that total leasing activity in 2023 is down significantly from the 7.1 msf reported in 2019 which was the last full year before the pandemic. Office availability remains at an all-time high and is expected to increase even further as return to office rates have lagged the rest of the country and many large technology companies have realized they now have too much space.

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