SAN JOSE, CA-Silicon Valley's commercial real estate sector maintained steady activity in Q2 2013 with 6.1 million square feet of office, R&D, industrial and warehouse transactions during the period. That is according to Colliers' Silicon Valley office.
Office and R&D buildings represented the lion's share of activity with over 80% of the Valley's gross absorption in Q2 2013, says the firm. Santa Clara, Sunnyvale, and San Jose accounted for 60% of the activity for these two product types.
Overall for the quarter, the change in total occupied space (net absorption) increased more than 2.6 million square feet, which was the highest amount since Q1 2006. “Not only is the rate of space being vacated slowing down, new developments that were preleased in 2012 continue to be completed and occupied,” says Colliers. “Also, net absorption for the Silicon Valley's office sector totaled 825,000 square feet for the quarter, its highest amount since Q4 2001.”
Jeff Fredericks, managing partner of Colliers' Silicon Valley office, says that "The Silicon Valley's economic engine is turning and our commercial real estate market is reflecting that with very encouraging statistics."
Stay tuned for more on the Silicon Valley market, with an update on Santa Clara's home prices, which continue to heat up.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
