Silicon Valley, East Bay commercial markets look strong: Colliers report

Silicon Valley, East Bay commercial markets look strong: Colliers report

Santa Clara County and East Bay commercial real estate markets are looking strong, according to several Colliers International brokers.

The Santa Clara County “office market was actually stronger than we anticipated” during 2017, David Schmidt, an executive vice president in the Colliers San Jose office, said Tuesday in a presentation at the Trends 2018 conference, an annual Colliers International event. The event assessed what happened in the South Bay’s office, research and development, and industrial markets during 2017 and offered predictions for 2018.

Colliers previously predicted that Santa Clara County’s office market would end the year with a vacancy rate of 14.5 percent, but the actual result was a 12 percent vacancy rate, Schmidt reported.

Colliers predicts that the county’s office vacancies will improve to 9 percent in 2018.

The research and development market in Santa Clara County was initially projected by Colliers to be 11.3 percent for 2017, but the actual vacancy wound up at 10.6 percent for R&D space.

For 2018, Colliers predicts an R&D vacancy level in the county of 9.8 percent.

Available spaces are vanishing rapidly in Santa Clara County, Don Reimann, an executive vice president in the Colliers Silicon Valley office, said in an interview.

“Any kind of high-end office space is going away,” Reimann said. Similarly, research buildings and industrial spaces are being grabbed at a rapid pace. “Warehouse space is almost non-existent,” Reimann said.

Plus, it appears that big companies in Silicon Valley hunger for even more sites to lease or buy. Among them: Google, Apple and Facebook.

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