Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 21 (Xinhua)-- the mixed office trend in the post-epidemic era, coupled with an unstable economic environment, is prompting Silicon Valley technology companies to cut office space, according to the Wall Street Journal.

According to PexelsCoStar Group, the ▲ source, the office vacancy rate in Silicon Valley has risen from 11% in 2019 to 17% in June this year, including northern California such as San Jose, Palo Alto and Sunnyvale, and vacancy rates in places such as Menlo Park and Mountain View have exceeded 20% this spring.

According to the report, the current office vacancy rate in Silicon Valley is still lower than in the northern part of San Francisco, where the vacancy rate has reached more than 25%, more than twice as high as in 2019. However, some analysts say the gap in office vacancy rates between the two places will continue to narrow as technology companies continue to cut jobs.

Douglas Linde, president of Boston Real Estate, said on an April earnings call that the technology industry is not in high demand for offices and that there is little interest in office rentals in San Jose.

Scoop Technologies, the software company, points out that several large technology companies, including Amazon, Lyft and Salesforce, are requiring their employees to enter the office at least part of the week. Google even informed employees that office attendance would be seen as part of the performance review.

Still, such back-to-office policies have not stopped companies from continuing to reduce office space. CoStar points out that the sublet area of office space in Silicon Valley has risen from 2.7m square meters in 2019 to 7.6m square meters today, a record high.

Google announced in February that it would cut back on global office space due to layoffs and mixed office trends, with estimated costs of $500 million (CTOnews.com Note: currently about 3.59 billion yuan). Google has recently sublet 1.3 million square meters of office space in Mountain View and Moffet Park. Meta also recently put 700,000 square meters of Silicon Valley office space into the sublet market, related to the closure of its Sunnyvale, Calif., office.

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