SAN JOSE, CA—Trends2014, Colliers International‘s 15th annual commercial real estate forecast, recently provided outlooks on Silicon Valley’s commercial real estate market, the metamorphosis taking place as cities look to urbanize, and the economic and political landscape. Jeff Fredericks, executive managing director with Colliers, was enthusiastic in his CRE outlook for the Silicon Valley in 2014.
More than 600 Colliers clients and industry professionals attended the forecast at the California Theatre in downtown San Jose. The greatest optimism was centered on trends and records set in Silicon Valley’s real estate market during 2013.
“The record breaking performance in 2013 is a great glimpse into 2014,” Fredericks said. “We already have 1.9 million square feet of pending net absorption teed up for 2014 in the form of preleased new construction, and more than 1.4 million of that is office space.”
Fredericks continued, noting that “2014 might be the best year ever for office net absorption.” The prospects of a good net absorption year are partially owing to historic lows of supply coming on the market.
“Building on our 2013 momentum we think you’re going to see more than seven million square feet of gross absorption in the office sector in 2014 with net absorption eclipsing three million square feet, which would be a new record for office,” he added.
Check back with GlobeSt.com in the next day or so for more from the event and more on the “metamorphosis of Santa Clara.”