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Lots of New Inventory, Few New Availabilities

SANTA CLARA, CA-Although Silicon Valley saw one million of new space come online during the third quarter, it barely made a ripple in the space-starved local commercial market, according to the latest report by Commercial Property Services.

By Allison Landa | Updated on November 13, 2000

SANTA CLARA, CA-When does one million new square feet fail to make a dent in demand? Right here, right now, according to Commercial Property Services’ third quarter report.

Inventory in the Silicon Valley market increased from 5.3 million sf to 6.3 million sf during the third quarter, according to the report, and according to commercial Property Services CEO S. Gregory Davies, the report’s author, it’s still not enough. “Although the increase is significant in real terms, we are still left with a severe supply shortage,” Davies wrote, noting that net demand dropped to 1.2 million sf from 6.6 million sf during the third quarter. “But the increase in space and the decline in demand did not temper dramatically rising rents.”

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