SAN JOSE — Santa Clara County’s commercial real estate markets are looking strong — and the East Bay is also robust — according to several brokers with Colliers International.

The information about the South Bay was released during the Trends 2018 conference, an annual event conducted by Colliers International.

“The office market was actually stronger than we anticipated” in Santa Clara County during 2017, David Schmidt, an executive vice president in the Colliers San Jose office, said during a presentation Tuesday afternoon. The Colliers event assessed what happened in the South Bay’s office, research and development and industrial markets during 2017 and offered predictions for 2018.

Colliers previously predicted that Santa Clara County’s office market would end the year with a vacancy rate of 14.5 percent, but the actual result was a 12 percent vacancy rate, Schmidt reported. Colliers predicts that office vacancies will improve to 9 percent in 2018.

The research and development market in Santa Clara County was initially projected by Colliers to be 11.3 percent for 2017, but the actual vacancy wound up at 10.6 percent for R&D space. For 2018, Colliers predicts an R&D vacancy level of 9.8 percent.

The East Bay, especially Oakland, is also looking sturdy, according to Ken Meyersieck, regional executive managing director for the Colliers offices in the East Bay.

“Oakland is on everybody’s radar right now because of the housing being built, access to transit, the ability to create more density,” Meyersieck said in an interview with this news organization just before the Colliers presentations began. “Everyone is paying attention to Oakland now.”

Available spaces are vanishing rapidly in Santa Clara County, Don Reimann, an executive vice president in the Colliers Silicon Valley office, said in a interview with this news organization.

“Any kind of high-end office space is going away,” Reimann said. Similarly, research buildings and industrial spaces are being grabbed at a rapid pace. “Warehouse space is almost non-existent,” Reimann said.

Plus, it appears that big companies in Silicon Valley hunger for even more sites to lease or buy. Among them: Google, Apple and Facebook.

“We are seeing a lot of leasing velocity,” Reimann said. “Redevelopment of existing spaces is the next play. There will be higher densities. We are going to have to build up and not out.”

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Source:: East Bay – Business


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Silicon Valley, East Bay commercial markets look strong: Colliers report

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