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ilicon Valley's office market may be showing signs of a rebound, driven by big deals from major companies. Amazon.com has struck a licensing agreement with WeWork for 217,000 square feet at 401 San Antonio Road, taking over space previously subleased to LinkedIn. This deal follows Snowflake's sublease of 773,000 square feet from Meta in Menlo Park, the largest Bay Area office lease in over a decade.
The Amazon-WeWork arrangement and other recent deals are drawing new tenants to buildings in Silicon Valley, including those marketed by Colliers. Market insiders believe this marks the beginning of an office bounce-back from pandemic-era vacancy rates, which reached 22% in the third quarter, according to JLL, or a record 23%, as reported by Cushman & Wakefield.
As larger companies take big spaces, smaller ones are likely to follow suit, says Chad Leiker, a commercial broker at Kidder Mathews. This trend could bring Silicon Valley closer to pre-pandemic office usage patterns in 2025.
