Demand for research-and-development space in Silicon Valley cooled in the third quarter, according to a recent report.
The availability rate for research and development space across Silicon Valley rose from 9.6% in the second quarter to 9.9% in the third. Both the amount that was directly available from property managers and available for sublease increased quarter-over-quarter. Meanwhile, net absorption — the amount of space leased, occupied or taken off the market in a period less the amount of new unoccupied space that comes online or becomes available — was negative to the tune of 81,524 square feet, market-wide. By contrast, the market absorbed 536,199 square feet of R&D space in the second quarter.
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