Tech giants keep momentum in the Silicon Valley industrial market
Investment and leasing activity among Silicon Valley tech giants was very robust in the first quarter, according to Transwestern. First quarter net absorption was 675,000 square feet, the highest it has been in two years.
Most notably, Google continued its rapid expansion into San Jose and occupied all 563,000 square feet of Midpoint @237 on Disk Drive having acquired the class A industrial park at the beginning of the year.
And Facebook made its big move into Fremont after signing a notable lease at Paseo Padre Parkway during the previous quarter, totaling approximately 100,000 square feet.
All market indicators appeared to peak, as vacancies declined further and leasing activity was at its highest level in two years, concludes Transwestern. Consequently, rents continued to climb and surpass historic highs with no sign of slowing.