Leasing activity falls to historic lows as COVID-19 impact hits Silicon Valley
Numerous companies have put real estate decisions on hold, as both state and local legislatures are still uncertain of future restrictions regarding COVID-19. Few companies are committing to leasing new space, due to the uncertainty, and many companies’ work-from-home (WFH) policies have been extended for the near future. Some companies have taken a proactive approach in expanding their office footprints in order to de-densify space to meet social distancing requirements; however, overall office demand dropped drastically and just 800,000 square feet (sf) was leased in the past three months - a roughly 50.0% drop from the first-quarter total. Overall availability rose 50 basis points (bps) to 14.8% quarter over quarter while overall asking rents held fairly flat at $4.95 per square foot (psf).