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The Wall Street Publication > Blog > U.S > Silicon Valley workplace market improves as vacancies shrink, offers develop
U.S

Silicon Valley workplace market improves as vacancies shrink, offers develop

Editorial Board Published March 27, 2025
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Silicon Valley workplace market improves as vacancies shrink, offers develop
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SAN JOSE — The Silicon Valley workplace market is getting off to begin in 2025, in accordance with a brand new report that detailed enhancements on a number of fronts within the area.

The emptiness charge fell, rents elevated, and total deal exercise expanded within the South Bay through the January-through-March first quarter of 2025, Colliers, a business actual property agency, reported.

Nvidia headquarters workplace buildings at 2788 and 2888 San Tomas Expressway in Santa Clara. (Gensler, Jason O’Rear Images)

These figures have been an enchancment from the October-through-December fourth quarter of 2024, in accordance with the Colliers report, which offered an early peek on the area’s workplace market statistics. The report outlined Silicon Valley as Santa Clara County and Fremont.

Listed below are some key statistics that measured the efficiency of the South Bay workplace market through the first three months of 2025, in accordance with the preliminary report:

— The general workplace emptiness charge was 16.4% within the first quarter, in contrast with 16.6% within the fourth quarter. Within the year-ago first quarter, workplace emptiness was 13.9%.

— Sublease area emptiness was 4.3% within the first quarter of 2025, in contrast with 4.7% within the fourth quarter of 2024 and 5.5% within the first quarter of 2024.

— Asking workplace month-to-month rents have been $5.41 a sq. foot within the first quarter of 2025, in contrast with $5.36 a sq. foot within the fourth quarter of 2024 and $5.35 within the first quarter of 2024.

Tenant exercise within the South Bay was robust sufficient that 333,800 sq. toes more room was leased or occupied than the quantity of area that was vacated within the first quarter of 2025. That is also referred to as optimistic web absorption.

Within the fourth quarter of 2024, 118,900 sq. toes more room was stuffed than was vacated within the South Bay, Colliers reported.

The 2 most up-to-date quarters represented a pointy enchancment in contrast with the tendencies for a number of prior quarters within the South Bay workplace sector.

“Net absorption was positive for the second consecutive quarter following six quarters of occupancy losses,” Colliers reported.

TAGGED:dealsgrowimprovesmarketOfficeshrinkSiliconvacanciesValley
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