Tailwinds in life sciences and logistics markets revitalized Northern California’s Silicon Valley commercial real estate market in the third quarter, as market-wide occupancy gains surpassed 1.5 million square feet, reported Colliers. Industrial and R&D sectors saw a vibrant quarter, while activity in the office market remained muted as the pandemic further delayed big tech’s return-to-office plans.
Leasing activity in the industrial-warehouse sector accelerated in third quarter 2021, with gross absorption reaching 2.2 million square feet, up 42.0 percent year-over-year. Net absorption was positive for the fifth consecutive quarter, with an impressive 1.3 million square feet of occupancy gains. Silicon Valley’s industrial market has not seen such levels of gross or net absorption since second quarter 2016. The industrial sector has been the fastest-growing commercial property sector in Silicon Valley in 2021, with year-to-date net absorption amounting to more than 1
