Deal volume fell below 2.0 million square feet (msf) for the first time in several quarters, totaling 1.9 msf. Tenants have leased 8.2 msf in the four most recent quarters.
The Valley’s overall availability rate rose by 20 basis points, increasing to 14.4%. The availability rate in Class A buildings jumped to 17.8%.
LITTLE CHANGE IN RENT
Overall asking rent spiked by 3.7% to $51.40 ($4.28) in the fourth quarter. Class A rent rose by 5.2% to $54.39 ($4.53) during the quarter.
Office property sales during the first eleven months of 2018 totaled $4.1 billion, a 12.2% decrease compared to the same period during 2017.
“Silicon Valley ended 2018 with another round of aggressive big-block takedowns. As the availability of larger blocks of space dwindles further, companies are pushing into areas such as North San Jose and Downtown San Jose. As a result of space shortages, even mid-sized companies are facing rental rate growth. Additionally in Menlo Park, Palo Alto and Sunnyvale/Cupertino, startups are being squeezed out of the market.”Nathan Currie, Corporate Managing Director