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Tightening availability pushes development pipeline forward
Overall availability in the Silicon Valley office market declined 290 basis points over the year to end Q2 at 13.1%. Class A availability followed suit, dropping 300 basis points year over year to 15.9%. With options tightening, a wave of development activity is underway with approximately 7.0 million square feet (msf) of office space in the pipeline – just in San Jose alone. With tightening availability, asking rents continue to climb. The overall average asking rent currently stands at $57.80 per square foot (psf), with Class A rents averaging $62.43 psf.