Silicon Valley Industrial Vacancy Up Slightly

SAN JOSE-The Silicon Valley industrial market held its own through the first three months of the year, as vacancy rates at the end of March remained less than a percentage point higher than the prior quarter, according to the latest report by Colliers International.

The rate was 2.24%, up only 0.58% from the fourth quarter of 2000. The result reflects a solid warehouse and distribution market and a harder hit office-R&D sector.

There was a mere 228,246 sf of vacant industrial sublease space on the market and an additional 200,739 sf of occupied sublease space being marketed as available, according to the report. In the R&D market, relatively huge amounts of occupied spaces are being offered for lease or sublease as businesses continue to make consolidation plans.