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I am an investor via CrowdStreet in one of the office buildings in south-ish area (Campbell) of silicon valley. Here is a market update I got today- Silicon
by gauravphoenix 4y ago
I am an investor via CrowdStreet in one of the office buildings in south-ish area (Campbell) of silicon valley. Here is a market update I got today-
Silicon Valley’s office vacancy rate increased again in Q4 2022 to 19.0%, up from 18.6% in Q3. The end of 2022 marks the 12th consecutive
quarter where the overall vacancy rate has risen. Campbell’s vacancy rate for in Q4 was 30.0% with negative 278,167 of overall absorption.
Silicon Valley’s average asking rent increased slightly in Q4 2022, rising to $5.36 psf on a monthly full-service basis, a $0.02 increase
from the previous quarter and a $0.04 increase year-over-year. Campbell’s average asking rent was $4.18. Given the current lack of demand
for office space as well as upcoming economic uncertainty, there is little expectation that significant rent increases would occur in the
near term. Transaction volume fell sharply in Q4 2022, posting just 778,712 sf of gross absorption, a 76% decrease compared to the previous
quarter. Demand for new office space fell on the news of large-scale tech-sector layoffs this quarter that will likely persist through 2023.
The Valley measured 2.6 msf of net occupancy losses in 2022, the largest amount since 2001 and marks the third year of negative net
absorption
- jeffbee 4y agoI just moved my office from Campbell to DTSJ right near Diridon. Campbell might be the worst "city" I've ever encountered. Was only located there because I could not afford SJ rents but now I am like so many other fleeing to quality.
- nradov 4y agoIn what way is San Jose higher quality than Campbell? They are literally right next to each other, and indistinguishable in most ways.
- jeffbee 4y agoCentral SJ and central Campbell, to the extent that Campbell has a center that can be identified by a process other than the weighted centroid of its strip mall liquor stores, are five miles apart. That is a long way. SJ is sprawling and most undesirable, but DTSJ is well served by rail from SF and the East Bay so it's easier to ask people to come to the office, whereas asking them to come to the office in Campbell is the same as demanding that they buy a car.
- telotortium 4y agoHey! VTA light rail technically exists!
- softwaredoug 4y ago"Vacancy rate" also doesn't capture the rented offices that are mostly empty ghost towns where employees are staying closer to home.