The volume of blocks of space greater than 100,000 square feet have risen 39 percent over the past 6 months. Class A product represents 55 percent of the total square feet of available large blocks, 2.1MSF of which is space that has been built or renovated within the past 2 years. Sublease space represents 25 percent of Class A availability, primarily due to recent M&A activity and tenants upgrading to newer development.
Santa Clara and San Jose account for 60 percent of Class A blocks currently on the market. Though tenant demand has remained steady, the number of tenants seeking 100,000 SF or greater has decreased by 28 percent y-o-y. This reflects some caution surrounding larger lease commitments, but allows greater opportunity for full for “full-floor” tenants wanting high image space.
Source: JLL Research