Silicon Valley’s R&D market continues to expand as more tenants continue to choose Silicon Valley. This growth can be seen through the lens of strong venture capital figures, increasing leasing activity, and overall larger transaction size & volume. Although venture capital invested decreased by 2.6% on average per quarter from 2021, the average amount of quarterly capital invested is up 65.9% from two years ago. Leasing activity
by number of deals and by total square footage have returned to pre-pandemic levels. Leasing activity’s total number of deals, in the current quarter, recorded 6.5% less than pre-pandemic figures, compared to a 40.3% reduction from the start of the pandemic. Leasing activity by square footage recorded 6.8% less than pre-pandemic, compared to a 42.7% decrease from the pandemics beginning.
Deal size increased year-over-year as tenants have grown and demand larger footprints of specialized R&D space. Becton Dickinson recorded the largest transaction of the quarter taking 238,529 square feet at the Park Point campus in Milpitas. Looking ahead, expect demand for R&D product to continue into H2 2022 as vacancy remains tight and rates continue to increase. Sales activity remains strong as the need for redeveloping tired R&D assets in Silicon Valley remains at the forefront.
by number of deals and by total square footage have returned to pre-pandemic levels. Leasing activity’s total number of deals, in the current quarter, recorded 6.5% less than pre-pandemic figures, compared to a 40.3% reduction from the start of the pandemic. Leasing activity by square footage recorded 6.8% less than pre-pandemic, compared to a 42.7% decrease from the pandemics beginning.
Deal size increased year-over-year as tenants have grown and demand larger footprints of specialized R&D space. Becton Dickinson recorded the largest transaction of the quarter taking 238,529 square feet at the Park Point campus in Milpitas. Looking ahead, expect demand for R&D product to continue into H2 2022 as vacancy remains tight and rates continue to increase. Sales activity remains strong as the need for redeveloping tired R&D assets in Silicon Valley remains at the forefront.