Silicon Valley’s nine-year streak of occupancy gains was broken in 2020. The market saw an annual occupancy deficit of 4.7 million square feet. The COVID-19 pandemic elevated Silicon Valley’s overall vacancy rate to 6.5%, up 150 basis points year-over-year, the highest since Q3 2017. However, the distress was not felt equally across all sectors in the Valley. While office and R&D sectors witnessed significant annual occupancy losses, the industrial market, driven largely by a booming e-commerce industry, bucked the curve, posting occupancy gains in 2020.
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