Big Tech Comes Off the Sidelines, Absorption Rebounds
Silicon Valley’s commercial real estate market expanded by 2.3 million square feet in 2021, making up for half of the absorption lost in 2020. Quarterly leasing activity was strong with nearly 7.0 million square feet of gross absorption, up 89.3 percent compared to Q4 2020. For the second consecutive quarter since the start of the pandemic the market saw positive occupancy gains, surpassing 1.2 million square feet. Fourth quarter gains were driven by the revival of the office market and preleased new construction.
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