Market Report

Silic

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21Q2

Accelerating success.

Demand for Silicon Valley commercial real estate accelerated in the second quarter of 2021 as home-grown tech giants like Apple, Applied Materials, and NetApp deepened their footprint. This indicates that despite a trend of flexible and hybrid work models, physical campuses will continue to play a vital role in the Valley’s unique culture and growth.

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Availability Rate Vacancy Rate

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Total Inventory (in Thousands of SF) 354,837.8 358,098.7 359,208.9

New Supply (in Thousands of SF) 443.9 2,178.0 1,751.7

Net Absorption (in Thousands of SF) (2,114) (170.7) (218.1)

Overall Vacancy(in Thousands of SF) 5.6% 6.9% 7.3%

Under Construction(in Thousands of SF) 14,269.4 9,990.9 8,708.9

Office Lease Rates (FS) $5.24 $5.15 $5.26

R&D, IND, WSE Rents (NNN) $2.03 $2.17 $2.27

Renewal369-399 N Whisman Road Mountain View | 252.6K SF

Direct Lease 600-775 N Mary Avenue

Sunnyvale | 698.6K SF

Direct Lease 700 Santana RowSan Jose | 301K SF

Direct Lease 48401 Fremont Boulevard

Fremont | 209.9K SF

Direct Lease 1710 Automation Parkway

San Jose | 196.6K SF

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Renewal464-468 Ellis Street

Mountain View | 195K SF

Executive SummarySilicon Valley’s commercial real estate activity rebounded in Q2 2021 with 6.2 million square feet of gross absorption, up 146.9% compared to Q2 2020. For the second consecutive quarter, the office market saw positive occupancy gains driven by tech giants like Apple, Amazon, and NetApp. Demand for industrial product remained robust with occupancy gains exceeding 376,000 square feet for the quarter.

Market Graph

Market IndicatorsHistoric Comparison

5.8%Unemployment Rate U.S.

86.4U.S. Consumer Confidence Index

4.7%Unemployment Rate Santa Clara County as of May 2021

Overall market availability increased to 11.3%, up 220 basis points year-over-year while vacancy increased to 7.3%, up 170 basis points over the same period.

Source: Colliers

Vacancy Rate

7.3%

Net Absorption

(218)K SF

Under Construction

8.7M SF

Office Class A Lease Rates (FS)

$5.75

Office Lease Rates (FS)

$5.26

Industrial Lease Rates (NNN)

$1.33

R&D Lease Rates (NNN)

$2.52

Key Takeaways• Office leasing activity reached 2.8 million sq. ft., levels not seen since Q2 2018.

• Overall commercial real estate vacancy rose to 7.3%, up 170 basis points year-over-year.

• The industrial market saw the largest share of occupancy gains, compared to office & R&D markets, with more than 376,000 sq. ft. of positive net absorption.

• R&D sector led commercial property in occupancy losses with roughly 774,000 sq. ft.

Recent Transactions

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2OfficeThe pandemic created uncertainty surrounding the future of office as remote work became the new normal in Silicon Valley. However, the second quarter of 2021 marked a turning point in Silicon Valley’s office market. With COVID-19 restrictions phasing out and more companies announcing their return-to-office plans, deal velocity accelerated. Gross absorption, which is the measure of non-renewal leasing and user sale activity, reached nearly 2.8 million square feet, up 237.2 percent year-over-year, hitting levels not seen since Q2 2018. This uptick in activity can be attributed to a combination of new leasing commitments and build-to-suit new construction coming online. For the second consecutive quarter net absorption was positive, registering more than 179,000 square feet for the quarter and more than 375,000 square feet year-to-date.

Despite remote and hybrid work trends, tech companies’ appetite for office space remained strong. In May Apple signed the largest office lease of 2021, committing to nearly 700,000-square-feet at Irvine Company’s Pathline Park campus in Sunnyvale. Following this massive deal, which involved five existing buildings and one entitled building, the 1.3-million-square-foot Pathline Park stands 100 percent leased. Another significant deal involved NetApp’s 301,000-square-foot lease at 700 Santana Row in West San Jose. The deal involved NetApp selling their Sunnyvale campus to Tishman Speyer for $365 million and moving their headquarters to the amenity-rich mixed-use Santana Row location.

Several key office projects came online this quarter. In total, three projects totaling more than 1.0 million square feet entered the Silicon Valley market, 85.9 percent of which was immediately absorbed. Two major owner-developer projects were delivered: Microsoft’s 643,000-square-foot campus at 1045 La Avenida Avenue in Mountain View and Intuitive Surgical’s 326,000-square-foot building at 1050 Kifer Road in Sunnyvale. In addition, one speculative development

completed construction in Santa Clara – MDY Properties delivered 3075 Olcott Street which totals roughly 259,000 square feet and is partially leased to Amazon Web Services.

Despite signs of revival, Silicon Valley’s office vacancy rate increased for the seventh consecutive quarter and stands at 10.0 percent. One reason for this trend is more sublease space coming online. Some major subleases to enter the market include 23andMe’s 155,000-square-foot headquarters at 221 Mathilda Avenue in Sunnyvale, Walmart Labs’ 107,000-square-foot campus at 860 California Avenue, also in Sunnyvale, and Jazz Pharmaceuticals’ 100,000-square-foot space at 3181 Porter Drive in Palo Alto. At the end of second quarter the sublease availability space rate stands at 3.7 percent.

In spite of increased vacancy, direct office asking rents reached a new peak of $5.26 Full Service, up $0.02 year-over-year, indicating resiliency in the market.

Currently, there is more than 7.5 million square feet of office projects under construction, 75.1 percent of which is either owner-developer or preleased, signaling more growth on the horizon.

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Total Vacancy Rate Asking Rent (FS)

Silicon Valley Office Net Absorption vs. Gross Absorption

Office Availability Rates Select Silicon Valley Cities

Silicon Valley Office Rent vs. Vacancy

Source: Colliers

Source: Colliers

Source: Colliers

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2Significant Lease Activity

Amazon Web Services – Direct Lease3075 Olcott StreetSanta Clara85,995 SF

Akamai Technologies – Renewal3333 Scott BoulevardSanta Clara82,099 SF

Apple – Direct Lease600-775 N Mary AvenueSunnyvale 698,550 SF

Dell, Inc – Renewal5450 Great America ParkwaySanta Clara153,584 SF

NetApp – Direct Lease700 Santana RowSan Jose301,000 SF

Colliers | Silicon Valley | 21Q2 | Market Report

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Tishman Speyer Properties1395 Crossman AvenueSunnyvale696,104 SF

Brookfield Asset Management Inc.391-401 San Antonio RoadMountain View456,760 SF

Applied Materials, Inc.955-965 E Arques AvenueSunnyvale89,273 SF

Lane Partners, LLC488 Almaden BoulevardSan Jose381,000 SF

TMG Partners350-380 Ellis StreetMountain View428,459 SF

Significant Sales Activity

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2R&DDemand for Silicon Valley R&D product remained strong in the second quarter of 2021 with gross absorption, the measure of non-renewal leasing and user-sale activity, reaching nearly 1.7 million square feet, up 75.1 percent year-over-year. The quarter saw seven non-renewal leases measuring greater than 50,000 square feet and three over 100,000 square feet. Compared to Silicon Valley’s office market, the R&D market was not as impacted by remote working trends, allowing for sustained momentum in the first half of 2021.

Life science activity remains strong in Silicon Valley’s R&D market. Most recent examples include Vitrolabs’ 44,815-square-foot lease at 1561 Buckey Court in Milpitas and Specific Diagnostics’ 32,805-square-foot lease at 130 Baytech Drive in San Jose. In addition, the market continued to see technology and semiconductor companies commit to large blocks of R&D space. The largest R&D deal of the quarter involved Google’s 252,550-square-foot renewal at 369-399 N. Whisman Road in Mountain View. The largest non-renewal lease deal of the quarter came from QuantumScape with a 196,647-square-foot lease at 1710 Automation Parkway in San Jose. Another notable deal involved Corsair Gaming, with a 118,127-square-foot lease at 115 McCarthy Boulevard in Milpitas. Silicon Valley’s R&D market continued to see strong user-sale activity. Applied Materials was particularly active in Sunnyvale with the acquisition of 545 Oakmead Parkway and 955-965 Arques Avenue for a combined 204,000 square feet.

Despite an active quarter, the R&D market continued to see negative net absorption. Q2 2021 marked the seventh consecutive quarter of occupancy losses, which totaled more than 774,000 square feet. Several notable vacancies and subleases attributed to the dip in net absorption. Symantec’s 152,000-square-foot space came online at 515 and 545 Whisman Road in Mountain View shortly after trading hands

to Steelwave and Angelo Gordon. The R&D sublease market continued to expand with more than 4.5 million square feet of space currently on the market today, translating to a sublease availability rate of 3.3 percent. Some examples of new subleases to enter the market include Forescout Technologies’ 95,948-square-foot space at 190 Tasman Drive in San Jose and Walmart Labs’ 107,000-square-foot campus at 860 California Avenue in Sunnyvale.

The R&D market vacancy rate rose to 8.3 percent at the end of the second quarter of 2021, up 160 basis points from Q2 2020. This vacancy increase is still significantly lower compared to the office market, which saw vacancy rates rise 350 basis points over the same period. While absorption remains negative, the R&D sector saw an increase in average asking rates at $2.52 NNN, $0.24 above Q2 2020 rates.

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Silicon Valley R&D Net Absorption vs. Gross Absorption

R&D Availability Rates Select Silicon Valley Cities

Silicon Valley R&D Rent vs. Vacancy

Source: Colliers

Source: Colliers

Source: Colliers

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2Significant Lease Activity

QuantumScape – Direct Lease1710 Automation Parkway San Jose196,647 SF

Google – Renewal369-399 N. Whisman RoadMountain View252,550 SF

Google – Renewal464-468 Ellis Street Mountain View194,993 SF

Corsair Gaming, Inc. – Direct Lease115 McCarthy Boulevard Milpitas118,127 SF

Cepton Technologies, Inc. – Sublease 399 W Trimble RoadSan Jose92,842 SF

Colliers | Silicon Valley | 21Q2 | Market Report

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Hines REIT 49000-49090 Milmont Drive Fremont209,300 SF

Steelwave/Angelo Gordon & Co.515-545 N Whisman RoadMountain View149,887 SF

Washington Holdings30-130 Rio Robles San Jose374,314 SF

W.P. Carey5521 Hellyer AvenueSan Jose203,807 SF

Intelli, LLC1603-1765 S Main StreetMilpitas166,258 SF

Significant Sales Activity

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2Industrial/WarehouseMomentum accelerated in the Silicon Valley industrial market with quarterly gross absorption, the measure of new leasing and user-sales, surpassing 1.7 million square feet in the second quarter of 2021. This amount is 133.6 percent above the same period last year. The market saw roughly 377,000 square feet of positive net absorption this quarter, which translates into more than 553,000 square feet of occupancy gains year-to-date, making it the fastest growing commercial property sector in the Valley.

Applied Materials accounted for the largest industrial lease transaction at Duke Realty’s newly built 210,000-square-foot warehouse located at 48401 Fremont Boulevard in Fremont. In addition to this deal, the semi-conductor company also purchased more than 200,000 square feet in the Sunnyvale R&D market this quarter.

The industrial sublease market saw some action in the second quarter– Watchpoint Logistics sublet SF Motor’s 136,632-square-foot space at 607 McCarthy Boulevard and Piedmont Moving Systems sublet Suddath’s 83,914-square-foot space at 2071 Ringwood Avenue in San Jose. As a result, the industrial sublease availability rate fell to 1.1 percent, levels not seen since the start of the pandemic in Q1 2020.

Four industrial properties delivered this quarter: two buildings at Pacific Commons South in Fremont totaling nearly 477,000 square feet, a 31,172-square-foot building at 18695 Madrone Parkway in Morgan Hill, and a 11,154-square-foot building located at 8885 Forest Street in Gilroy. Of the aforementioned buildings, two were delivered fully preleased. These include a 373,957-square-foot warehouse at Pacific Commons South, fully preleased to Amazon and 18695 Madrone Parkway in Fremont, which was fully preleased to Silicon Valley Glass.

In 2020, Amazon was the largest user taking Silicon Valley’s industrial-warehouse space, totaling more than 1.5 million square feet of existing and under construction product. However, halfway through 2021, it seems Amazon’s appetite has tapered in Silicon Valley with no new transactions taking place this year.

Strong demand for industrial product contributed to the vacancy rate retracting back to pre-pandemic levels of 3.1 percent. With limited supply on the market, it is not surprising that average asking rents reached a new peak in of $1.33 NNN in Q2 2021, up $0.08 compared to Q2 2020.

Looking ahead, there is more than 1.0 million square feet of industrial product under construction in Silicon Valley and 58.6 percent of that is preleased, which indicates a strong and stable market.

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Silicon Valley IND/WSE Net Absorption vs. Gross Absorption

IND/WSE Availability Rates Select Silicon Valley Cities

Silicon Valley IND/WSE Rent vs. Vacancy

Source: Colliers

Source: Colliers

Source: Colliers

Colliers | Silicon Valley | 21Q2 | Market Report

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21Q2Significant Lease Activity

Watchpoint Logistics - Sublease607 N McCarthy BoulevardMilpitas136,632 SF

Piedmont Moving Systems - Sublease2071 Ringwood AvenueSan Jose83,914 SF

Future Motion, Inc. - Direct Lease587 Charcot AvenueSan Jose80,170 SF

Apple - Renewal1021-1071 Yosemite DriveMilpitas169,195 SF

Applied Materials, Inc. - Direct Lease48401 Fremont BoulevardFremont209,926 SF

Colliers | Silicon Valley | 21Q2 | Market Report

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This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability.Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all l iability for loss and damages arising there from. This publication isthe copyrighted property of Colliers International and /or its licensor(s). © 2021. All rights reserved. Data source: ESRI, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap. Logo data copyright © 2021 ChainXY Solutions Inc. All rights reserved. Map id: B_1625095736120 1 inch represents 5.92 miles

Moriel Real Estate, LLC660 Giguere CourtSan Jose25,560 SF

Sang, Helen & Cau Nhin1901 Las Plumas AvenueSan Jose15,481 SF

EHJ8 Property, LLC6215 Engle WayGilroy164,021 SF

LIT Acquisitions LLC2250 S 10th StreetSan Jose117,000 SF

Briggs Development559 Charcot AvenueSan Jose53,332 SF

Significant Sales Activity

Submarket/ Class

Total Inventory SF

Direct Availability

Rate

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RateAvailability

RateVacancy

Rate

Vacancy Rate

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Net Absorption

Current

Net Absorption

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ConstructionDeliveries

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Avg Direct Asking Rate

(FSG)

Silicon Valley TotalsA 68,144,095 10.9% 4.6% 15.4% 10.2% 9.6% 610,206 1,186,365 7,547,050 3,021,101 $5.75 B 35,457,267 11.3% 2.7% 14.1% 10.4% 9.6% (399,812) (686,212) 6,408 - $4.32 C 8,662,972 11.4% 1.0% 12.4% 7.4% 7.1% (31,086) (124,610) - - $4.59 TOTAL 112,264,334 11.1% 3.7% 14.8% 10.0% 9.4% 179,308 375,543 7,553,458 3,021,101 $5.26

Cupertino / SaratogaA 4,417,681 6.3% 0.2% 6.5% 2.1% 1.9% (14,358) (35,464) - - $6.56 B 2,864,993 4.5% 3.0% 7.5% 5.5% 5.8% 2,189 (17,329) - - $4.88 C 188,496 6.0% 0.0% 6.0% 4.6% 3.6% (1,863) (1,863) - - $3.26 TOTAL 7,471,170 5.6% 1.3% 6.9% 3.5% 3.4% (14,032) (54,656) - - $6.09

Campbell / Los GatosA 1,902,257 15.4% 4.9% 20.4% 10.9% 10.0% (14,807) (40,116) - 4,270 $4.85 B 2,357,608 11.3% 2.1% 13.4% 10.8% 9.9% (21,263) (34,074) 6,408 - $4.06 C 244,173 6.0% 0.0% 6.0% 6.0% 6.3% 840 (1,813) - - $2.99 TOTAL 4,504,038 12.7% 3.2% 15.9% 10.6% 9.7% (35,230) (76,003) 6,408 - $4.46

Fremont / MilpitasA 810,633 10.7% 5.7% 16.4% 10.6% 13.3% 20,682 (32,338) - - $2.51 B 1,793,014 8.1% 4.1% 12.2% 11.1% 10.7% (7,566) (54,386) - - $2.71 C 581,654 6.0% 0.0% 6.0% 5.6% 5.6% - - - - $- TOTAL 3,185,301 8.4% 3.7% 12.1% 10.0% 10.4% 13,116 (86,724) - - $2.65

Gilroy / Morgan HillA 418,595 5.6% 0.0% 5.6% 5.6% 1.0% (19,347) (20,687) - - $2.84 B 442,665 0.9% 0.0% 0.9% 0.9% 0.9% - - - - $1.82 C 270,933 9.3% 0.0% 9.3% 9.3% 9.3% - 897 - - $- TOTAL 1,132,193 4.7% 0.0% 4.7% 4.7% 3.0% (19,347) (19,790) - - $2.04

Los AltosA 320,267 11.8% 1.0% 12.8% 5.8% 5.8% - (6,354) - - $7.63 B 520,071 19.6% 4.4% 24.0% 21.0% 19.9% (8,196) (22,585) - - $4.88 C 375,030 6.0% 2.0% 8.0% 5.6% 6.5% 1,952 (8,966) - - $5.44 TOTAL 1,215,368 13.3% 2.8% 16.1% 12.2% 12.0% (6,244) (37,905) - - $5.73

Mountain ViewA 6,323,758 4.3% 3.1% 7.4% 5.1% 5.2% 616,633 601,769 1,939,788 643,000 $7.77 B 1,805,378 7.1% 3.2% 10.3% 6.5% 6.0% (36,883) (68,417) - - $6.56 C 454,578 6.6% 0.9% 7.5% 5.1% 5.1% - (20,300) - - $4.69 TOTAL 8,583,714 5.0% 3.0% 8.0% 5.4% 5.4% 579,750 513,052 1,939,788 1,286,000 $7.24

Palo AltoA 6,808,839 16.9% 4.8% 21.7% 17.1% 16.0% (92,891) (339,921) - 72,662 $8.92 B 4,499,101 8.4% 4.6% 13.1% 10.2% 8.8% (67,332) (145,266) - - $7.97 C 1,936,961 22.5% 2.0% 24.5% 7.1% 8.2% 14,180 (28,436) - - $8.58 TOTAL 13,244,901 14.8% 4.3% 19.2% 13.3% 12.4% (146,043) (513,623) - - $8.71

San JoseA 17,959,653 11.2% 4.2% 15.4% 9.3% 8.8% (96,019) 454,360 2,818,073 611,535 $4.41 B 14,261,282 8.4% 1.1% 9.5% 6.9% 6.7% (70,359) (148,001) - - $3.81 C 3,825,376 9.5% 0.9% 10.4% 8.8% 8.3% (24,724) (40,902) - - $3.13 TOTAL 36,046,311 9.9% 2.6% 12.5% 8.3% 7.9% (191,102) 265,457 2,818,073 - $4.12

Santa ClaraA 11,144,975 17.5% 10.1% 27.6% 19.4% 15.9% (210,833) (487,889) 1,166,056 432,706 $4.95 B 5,180,530 23.3% 5.8% 29.2% 22.0% 18.8% (169,249) (177,294) - - $3.55 C 366,394 11.5% 0.0% 11.5% 8.9% 2.8% (22,591) (23,577) - - $2.54 TOTAL 16,691,899 19.1% 8.6% 27.7% 20.0% 16.5% (402,673) (688,760) 1,166,056 518,468 $4.53

SunnyvaleA 18,037,437 7.3% 3.1% 10.4% 6.7% 7.5% 421,146 1,093,005 1,623,133 1,256,928 $6.92 B 1,732,625 26.6% 0.7% 27.3% 14.8% 14.6% (21,153) (18,860) - - $4.90 C 419,377 1.9% 0.0% 1.9% 1.9% 2.2% 1,120 350 - - $2.81 TOTAL 20,189,439 8.8% 2.9% 11.7% 7.3% 7.9% 401,113 1,074,495 1,623,133 652,000 $6.27

Silicon Valley Quarterly Comparisons and Totals21Q2 112,264,334 11.1% 3.7% 14.8% 10.0% 9.4% 179,308 375,543 7,553,458 3,021,101 $5.26 21Q1 110,023,074 10.6% 3.5% 14.1% 9.4% 8.2% 196,235 196,235 8,571,369 1,788,597 $5.15 20Q4 107,997,801 9.5% 3.2% 12.7% 8.2% 7.4% (221,984) (1,522,476) 9,586,846 2,085,832 $5.17 20Q3 107,178,603 8.6% 3.0% 11.6% 7.4% 6.5% (197,670) (1,300,492) 10,773,290 1,289,388 $5.09 20Q2 106,109,101 8.2% 2.7% 10.9% 6.5% 5.9% (596,705) (1,102,822) 11,881,078 306,085 $5.24

Silicon Valley | 21Q2 | Office | Market Statistics

Submarket/ Class

Total Inventory SF

Direct Availability

Rate

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RateAvailability

RateVacancy

Rate

Vacancy Rate

Previous

Net Absorption

Current

Net Absorption

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ConstructionDeliveries

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Avg Direct Asking Rate

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Silicon Valley TotalsR&D 138,362,476 9.9% 3.3% 13.2% 8.3% 7.9% (774,292) (1,317,620) 128,002 - $2.52 IND 63,779,795 3.4% 0.7% 4.1% 2.3% 2.3% (30,229) (158,523) 584,198 11,154 $1.39 WSE 44,802,297 5.6% 1.6% 7.2% 4.3% 4.4% 407,094 711,822 443,240 897,468 $1.29 TOTAL 246,944,568 7.4% 2.3% 9.7% 6.1% 5.8% (397,427) (764,321) 1,155,440 908,622 $2.27

CupertinoR&D 2,952,435 0.9% 0.4% 1.4% 0.9% 0.9% - (6,622) - - $3.15 IND - 0.0% 0.0% 0.0% 0.0% 0.0% - - - - $- WSE - 0.0% 0.0% 0.0% 0.0% 0.0% - - - - $- TOTAL 2,952,435 0.9% 0.4% 1.4% 0.9% 0.9% - (6,622) - - $3.15

Campbell R&D 1,347,680 11.2% 0.0% 11.2% 8.6% 8.2% (4,050) (18,666) 7,002 - $2.44 IND 1,042,240 3.8% 0.0% 3.8% 2.2% 2.4% 2,697 4,630 - - $1.80 WSE 110,016 100.0% 0.0% 100.0% 100.0% 0.0% (110,016) (110,016) - - $- TOTAL 2,499,936 12.0% 0.0% 12.0% 9.9% 5.5% (111,369) (124,052) 7,002 - $2.42

FremontR&D 20,670,527 10.1% 1.4% 11.5% 6.9% 6.8% (20,845) (60,399) - - $1.56 IND 9,791,807 4.1% 1.2% 5.3% 2.9% 2.2% (65,916) (103,612) 119,261 - $1.32 WSE 11,884,641 5.9% 1.2% 7.1% 5.0% 6.4% 515,460 699,553 - 686,146 $1.25 TOTAL 42,346,975 7.5% 1.3% 8.9% 5.4% 5.6% 428,699 535,542 119,261 686,146 $1.47

GilroyR&D 378,009 12.9% 0.0% 12.9% 1.6% 1.6% - - - - $0.95 IND 1,893,521 1.9% 0.0% 1.9% 0.8% 0.9% 12,675 12,675 - 11,154 $- WSE 3,848,351 0.7% 0.0% 0.7% 0.7% 0.7% - - - - $0.75 TOTAL 6,119,881 1.8% 0.0% 1.8% 0.8% 0.8% 12,675 12,675 - 11,154 $0.85

Los GatosR&D 341,622 13.5% 0.0% 13.5% 13.5% 17.2% 12,400 12,400 - - $2.32 IND 70,536 18.8% 13.4% 32.2% 13.4% 13.4% - - - - $1.60 WSE 16,000 0.0% 0.0% 0.0% 0.0% 0.0% - - - - $- TOTAL 428,158 13.9% 2.2% 16.1% 13.0% 15.9% 12,400 12,400 - - $1.87

MilpitasR&D 13,834,550 14.4% 4.4% 18.8% 12.9% 12.9% (67,044) (58,353) - - $2.34 IND 2,777,143 4.8% 0.4% 5.2% 1.5% 1.5% (744) (2,305) - - $1.26 WSE 5,646,007 9.7% 2.6% 12.4% 6.8% 6.2% (36,663) (54,828) 388,240 - $1.23 TOTAL 22,257,700 12.0% 3.5% 15.5% 10.0% 9.7% (104,451) (115,486) 388,240 - $2.07

Morgan HillR&D 2,882,175 5.7% 1.5% 7.2% 4.6% 5.2% 18,096 18,096 - - $0.60 IND 2,476,374 4.5% 0.0% 4.5% 1.3% 2.0% 18,766 18,766 450,076 - $1.25 WSE 1,017,110 0.0% 0.0% 0.0% 0.0% 0.0% 31,172 181,172 55,000 31,172 $- TOTAL 6,375,659 4.3% 0.7% 5.0% 2.6% 3.1% 68,034 218,034 505,076 31,172 $0.82

Mountain ViewR&D 11,839,787 6.6% 3.4% 10.0% 7.1% 5.1% (214,531) (269,962) - - $5.01 IND 1,692,628 5.1% 1.3% 6.4% 5.5% 4.6% (14,534) (19,334) - - $3.07 WSE - 0.0% 0.0% 0.0% 0.0% 0.0% - - - - $- TOTAL 13,532,415 6.4% 3.2% 9.5% 6.9% 5.1% (229,065) (289,296) - - $4.91

Palo AltoR&D 6,047,293 3.9% 8.7% 12.6% 7.6% 7.9% 14,276 (193,383) - - $6.52 IND 1,236,544 4.3% 2.8% 7.1% 3.8% 2.5% (17,092) (18,892) - - $3.19 WSE 83,994 0.0% 0.0% 0.0% 0.0% 0.0% - - - - $- TOTAL 7,367,831 3.9% 7.6% 11.5% 6.9% 6.9% (2,816) (193,383) - - $5.83

San JoseR&D 40,498,811 13.0% 4.6% 17.5% 11.2% 11.2% (189,179) (435,762) - - $2.23 IND 25,320,288 3.5% 0.6% 4.2% 2.7% 2.8% (27,627) (53,870) 14,861 - $1.15 WSE 17,372,849 4.0% 1.9% 6.0% 4.0% 4.2% 33,949 33,949 - 180,150 $1.26 TOTAL 83,191,948 8.2% 2.8% 11.1% 7.1% 7.2% (182,857) (455,683) 14,861 180,150 $2.02

Santa ClaraR&D 19,211,376 9.2% 1.8% 11.0% 8.6% 7.5% (218,611) (298,351) 121,000 - $2.71 IND 11,539,799 2.7% 0.6% 3.3% 1.6% 2.4% 61,546 29,252 - - $1.31 WSE 3,460,225 4.8% 0.7% 5.5% 3.7% 2.9% (26,808) (38,008) - - $1.38 TOTAL 34,211,400 6.6% 1.3% 7.9% 5.7% 5.3% (183,873) (307,107) 121,000 - $2.57

SunnyvaleR&D 18,358,211 6.2% 2.4% 8.6% 2.8% 2.2% (104,804) (6,618) - - $3.44 IND 5,938,915 1.0% 0.4% 1.5% 0.6% 0.6% - (25,833) - - $3.06 WSE 1,363,104 20.2% 3.0% 23.2% 1.3% 1.3% - - - - $1.50 TOTAL 25,660,230 5.7% 2.0% 7.7% 2.2% 1.8% (104,804) (32,451) - - $2.96

Silicon Valley Quarterly Comparisons and Totals21Q2 246,944,568 7.4% 2.3% 9.7% 6.1% 5.8% (397,427) (764,321) 1,155,440 908,622 $2.27 21Q1 248,075,652 7.6% 2.3% 9.9% 5.8% 5.8% (366,894) (366,894) 1,419,538 389,402 $2.17 20Q4 248,077,361 7.2% 2.1% 9.4% 5.8% 5.9% 48,479 (3,198,380) 1,254,536 1,018,807 $2.20 20Q3 248,269,274 7.0% 2.2% 9.1% 5.9% 5.2% (1,882,152) (3,246,859) 1,670,596 936,547 $2.18 20Q2 248,728,732 6.5% 1.9% 8.4% 5.2% 4.6% (1,517,372) (1,364,707) 2,388,666 223,827 $2.09

Silicon Valley | 21Q2 | R&D & Industrial/Warehouse | Market Statistics

Lena TukoResearch DirectorSilicon Valley+1 408 282 3898lena.tuko@colliers.com

John MoeExecutive Managing DirectorSan Francisco Bay Area+1 415 288 7850john.moe@colliers.comCA Lic. 01926124

Market Contacts:

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