The ongoing trend of tech giants subleasing big chunks of office space pushed sublease availability in Silicon Valley's office market to record levels in Q1 2023.
Sublease vacancies approached 3M SF in the first quarter in Silicon Valley, a quarter-to-quarter jump of 130 bps, while overall the vacancy rate crept up to 17.3%, according to JLL's Q1 2023 office market report.
Net effective rents in the Silicon Valley office market, including concessions and Tis, were 13% below base rents YTD at the end of the first quarter, compared to 2019 deals, which ran 0.5% below base rents.
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