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Silicon Valley absorption remained negative in the first quarter of 2021. However, occupancy losses were the lowest since the start of the pandemic.
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Gross absorption tallied 3.8 million square feet, however, preleased new deliveries accounted for 38.5 percent of quarterly deal volume.
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Several key office deliveries leased to big tech, Google and Facebook, drove the office market to positive net absorption for the first time since Q4 2019.
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Silicon Valley's office leasing activity in the first quarter of 2021 remained quiet. While absorption finally bounced back to positive levels, the reason for the movement was not an uptick in new activity. Instead, occupancy gains in the first quarter are attributed directly to several new deliveries preleased to big tech companies. Despite the considerable progress made in slowing the spread of COVID-19, Santa Clara County health officials continue to encourage telework for non-essential employees, which is delaying the return to the office for many employers.
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