San Jose - Silicon Valley industrial real estate market reports

Q3 2021: Due increases in demand and further expansion of
e-commerce, industrial leasing activity has seen varying levels of recovery. 

In Q3 of 2021, the Northern California industrial markets are in varying states of recovery. In markets where the industrial sector plays a traditionally larger role in the economy, like the East Bay and Sacramento, market fundamentals have seen a steady rise since the beginning of the Covid-19 Pandemic. In markets where the industrial sector plays a traditionally smaller role in the economy, like the San Francisco Peninsula and Silicon Valley, market fundamentals have begun to rebound since the peak of the Covid-19 Pandemic.

4.9%

Economic conditions

The Silicon Valley Unemployment rate continues to decline from a high of 12.4% in April to 4.9% now. 

4.5%

Leasing activity

Leasing has increased since the peak of the Covid-19 pandemic, with 2021 totals expected to surpass 2020 totals by 4.5%. 

4.5%

Vacancy rate

The Q3 2021 total vacancy rate has continued a slight uptick, increasing to 4.5% from a 2019 low of 3.9%. Average asking rents have increased 8.4% over that same time period, underscoring how industrial demand has outstripped supply in the Silicon Valley.

-3.4%

Rental rate

Base rents have softened slightly in the third quarter, but overall have trended upward since 2015, increasing by 49.1% over the last six years. 

4.3B%

Capital markets

During Q3 2021, over $800 million of deals were completed, making the total deal volume since the beginning of 2020 $4.3 billion. 

4.8M

Development activity

The Bay Area currently has 4.8M sf of industrial space proposed or under construction, which makes up 2.9% of the current total inventory in the regions. 

Download San Jose - Silicon Valley Industrial Market Report

Your source for the latest San Jose - Silicon Valley industrial market reports

Stay on top of current trends affecting the industrial real estate sector in San Jose - Silicon Valley. Gain an overall better understanding of San Jose - Silicon Valley's industrial real estate market conditions, so you can better formulate strategies to overcome any obstacle and know how to best invest in industrial real estate in San Jose - Silicon Valley.

Here, you’ll always find the latest industrial real estate market news so you can stay ahead. Come back often to see expert insights on the current and future of San Jose - Silicon Valley industrial real estate market.

Get the latest San Jose - Silicon Valley industrial market reports right in your inbox

Subscribe today

Please allow cookies to enable this feature

Our contact service requires the use of cookies to provide an optimal experience for you. Your current cookie setting prevents us from sharing this feature with you.

Allow cookies