Silicon Valley is filling with vacant office space

Silicon Valley is filling with vacant office space
Companies in Silicon Valley are abandoning office space at an ever increasing rate. Google and Facebook both have closed locations. Tech giants dominate the Silicon Valley office real estate market. They are traditionally slow to surrender space because the market has been tight historically. Tech companies went on a hiring spree during the pandemic and continued to hold onto office space despite the majority of employees working from home.
Retailers, restaurants, and other small businesses are starting to panic.
Silicon Valley office vacancy rates were 17% in June versus 11% in 2019. There is a record 7.6 million square feet of office space available versus 2.7 million in 2019.
In areas like Menlo Park and Mountain View, the vacancy rate is over 20%. Google made 1.3 million square feet of office space available recently.
However bad the situation in Silicon Valley is, its still not as bad as San Francisco where the vacancy rate is more than 25% driven by small firms that were quick to cancel their leases.
Analysts predict that vacancy rates in Silicon Valley will continue to increase as tech companies continue layoffs and shed office space.
Works Cited:
https://www.wsj.com/articles/vacant-offices-are-piling-up-in-silicon-valley-68e19f7?mod=Searchresults_pos1&page=1
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