JLL: Volume of Large Block Availability Grows; Demand Holding Steady With Fewer Big Fish

JLL, Silicon Valley, San Francisco, Bay Area, Large Block Availability, JLL Research, Santa Clara, San Jose

JLL, Silicon Valley, San Francisco, Bay Area, Large Block Availability, JLL Research, Santa Clara, San Jose

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

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