San Jose Office Foreclosure Deepens Silicon Pain
Why San Jose Office Vacancy Is Rising Although Silicon Valley hiring and output have improved in parts of the economy, San Jose office vacancy has continued climbing. Workspace demand remains structurally weaker than before the pandemic. The increase reflects persistent remote preferences and a weak return-to-office rate of 40.7%, one of the lowest among major U.S. metros. Many workers tied to Silicon Valley firms now live outside the Bay Area or California, reducing daily office use. At the same time, companies have cut onsite perks, making full-time attendance less attractive. Rising supply has added pressure. Office vacancy reached 21.8% in Q3 2024, up from 19.6% in 2023 and 8.6% in 2019, while average vacancy across asset classes hit 30.75%. The San Jose metro’s office vacancy rate more than doubled from its 2019 level. In contrast, San Francisco’s luxury market just saw a record sale of $42 million on Billionaires Row, highlighting how uneven Bay Area real estate conditions have...