File this under “YIKES!”… nearly 1/5 of Silicon Valley office space was empty in the Q3… landlords lowered rents to try to keep current tenants and attract news ones according to a report by Grubb and Ellis… the report says “Expect asking rents to decrease as companies put unoccupied space onto the market.”
(Source: Mercury News)
The rising vacancy rate is “re-emphasizing that this is the slowest commercial real estate market the valley has seen since the dot-com bust in 2001,” the report stated.
Empty space for research and development, the one- to three-story buildings where so many smaller tech companies reside, is also beginning to pile up, said Dick Scott, Grubb & Ellis’ managing director in Silicon Valley. …
“There was a temporary period of time where we all were naively optimistic that R&D would hold up. But it’s taking a hit now,” he said.
Read Sue McAllister’s full article “Silicon Valley Office Vacancy Rate almost 20 Percent” in the Mercury News (October 24, 2009).