Silicon Valley office construction hits six-year high

The pandemic’s second year produced the most office construction in Silicon Valley since 2015.

Some 3.06 million square feet of new office space sprouted in Santa Clara County in 2021, more than double the previous year, the Mercury News reported, citing a report from Cushman & Wakefield. While that’s still well below 2015’s 6 million square feet, Experts say demand for new office space will stay high this year.

By the numbers:
-2017: 2.61 million square feet
-2018: 1.38 million square feet
-2019: 2.43 million square feet
-2020: 1.5 million square feet

Big projects in north San Jose last year included the 657,000-square-foot Yahoo office campus at 1199 Coleman Avenue and a Google office campus of four buildings totaling 611,000 square feet at the corner of East Brokaw Road and North First Street.

Other noteworthy projects include the One Santana West office building that totals 375,000 square feet at 3155 Olsen Drive in San Jose and the second phase of the ServiceNow headquarters campus expansion, which totaled 268,000 square feet on Lawson Lane in Santa Clara.

The report said no new office buildings were completed in downtown San Jose in 2021.

One of the driving forces behind construction in Silicon Valley was the influx of big tenants leasing space in the area. In December, Facebook owner Meta Platforms leased 719,000 square feet at Moffett Green, a large tech campus owned by Tishman Speyer in Sunnyvale and in May, Apple leased 700,000 square feet in Sunnyvale’s new tech hub Pathline Park.

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[MN] — Victoria Pruitt