Silicon Valley, Calif., Office Vacancy Surging
June 26, 2023 | S&P Global Market Intelligence
Vacant office space is piling up in California’s Silicon Valley as technology companies reassess their workspace needs, The Wall Street Journal reported.
Office vacancies in San Jose, Palo Alto and Sunnyvale rose to 17% in June from the pre-pandemic level of 11% in 2019, according to the publication, which cited data firm CoStar. Subleased office space in Silicon Valley stands at a record 7.6 million square feet, compared to 2.7 million square feet in 2019.
Demand for office space in the area has been waning at a faster pace due to layoffs and lower-than-expected return-to-office rates.
Recently, Meta Platforms Inc. put on the market 700,000 square feet of its office space in Silicon Valley, in line with the closing of its offices in Sunnyvale. Google LLC also placed 1.3 million square feet of its office space in Mountain View and Moffett Park for sublease.
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Source:
S&P Capital IQ
