Silicon Valley’s R&D market ramped up gross absorption, deals transacted, and continued growth in venture capital invested in Q4 2021. Gross absorption, a measure of the total amount of space that tenants occupied in a specific period, demonstrated an increased appetite in 2021 as it neared pre-pandemic levels. The year 2021 recorded gross absorption at an 18.8% increase by a function of large transactions. QuantumScape doubled their existing headquarters, taking 222,400 square feet at 1750- 1762 Automation Parkway in San Jose. Other notable transactions include Shockwave Medical leasing 81,000 square feet at 3003 Bunker Hill Lane in Santa Clara, and EnerVenue taking 64,400 square feet at 3500 Gateway Boulevard in Fremont. Looking ahead in 2022, no new R&D buildings will be delivered in 2022, constraining current supply. Expect rental rates to continue increasing in tandem with vacancy rates decreasing into 2022.