Cushman & Wakefield has published its year-end regional office and R&D market reports for Silicon Valley, revealing a bit of contrasting statistics among the two sectors.
On the one hand, Silicon Valley’s office market closed 2019 with a powerful 2.2 million square feet (msf) of occupancy growth in the fourth quarter, driven by occupancies in new class A construction projects, whereas R&D categorized space fell deep into the red with 1.2 msf of occupancy loss in the final quarter. It should be noted there is some crossover between Silicon Valley’s office and R&D sectors due to similar user composition, and so combining them will have equated to a still positive 1 msf of combined growth.
Julie Leiker, Cushman & Wakefield’s research director for Silicon Valley, said, “The office market proved to be robust in 2019, generating more than 2.5 msf of total annual occupancy gain, nearly all occurring in the fourth quarter. The primary reason stemmed
