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Experts Skeptical About 2002 Recovery

SAN JOSE-Coming off the worst year of absorption on record, brokers at the Colliers International Trends2002 conference this week say many property owners are going to have to get creative to make it through the year.

By Michelle Savage | Updated on February 15, 2002

SAN JOSE-At Colliers International Trends2002 conference this week, brokers agreed that the key to the Silicon Valley commercial real estate market lies within stabilization of the market. However, experts are skeptical about recovery in 2002.

Throughout 2001, the available supply space increased by an average 3 million sf per month. At the end of 2001, Silicon Valley has 48.1 million sf available, an increase of more than 274% from the previous year. The overall availability rate had skyrocketed from 4.55% to a still-rising 15.95%.

“Simply stated, 2000 was the biggest year on record for absorption activity and 2001 was the worst,” says Jeff Frederick of Colliers. “One thing that seems certain is that Silicon Valley is going to need more than a modest economic recovery to significantly change the current state of the commercial real estate marketplace.”

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