Silicon Valley Occupancy Rates Remain Tight

Silicon Valley was rated among the top of the list in both office absorption and apartment rentals, according to ONCOR’s Mid-Year North American Office Market Report.

The area ranks third nationally, behind Manhattan and Atlanta, in demand for office space with 8 million sf of net leasing. It also sits high in the Class A rental rates list at $54 per sf, just behind San Francisco and Boston. Silicon Valley’s 2.43% rental vacancy rate, places it second in that category, trailing Seattle’s 1% vacancy rate.

The average rental rate for central business district Class A space across North America’s office markets leaped 6.9% to $22.72 over the past six months, 9.3 % compared to a year ago.The average rental rate outside CBDs is now $23.96, up 3.5% this year and 5.9% over the past 12 months.