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CBRE
Brief
 | 
Intelligent Investment
Silicon Valley Investment Sales
Office and R&D Volume Climbs
CBRE RESEARCH
 | 
March 9, 2022
Source: CBRE Research, February 2022.
The total volume of office and R&D sales activity in Silicon Valley surged in 2021 to $8.7 billion. Pent-up demand amid a recovering market resulted in 132 properties containing 15.1 million sq. ft. changing hands. This was 81% above 2020’s total sales volume of $4.8 billion and 56% above the five-year average (2016-2020) of $5.6 billion.

The largest office transactions in 2021 by sale price were the Verizon Complex in San Jose for $780 million at a 4.2% cap rate that was purchased by a foreign buyer (AGC Equity Partners) and Brookfield’s purchase of two buildings in Mountain View for $595 million at a 5.0% cap rate. R&D transactions were headlined by Tishman Speyer’s purchase of the NetApp campus in Sunnyvale for $365 million.

The inflow of capital to Silicon Valley’s office and R&D investment market should continue to grow as tech and life sciences companies ramp up their hiring, require more space and welcome back their workforces to their offices. Through the first two months of 2022, seven significant office and R&D sales have already been completed, including 3301-3307 Hillview Ave, a four-building office portfolio in Palo Alto that sold for $446 million or $1,527 per sq. ft., and the Synaptics R&D headquarters in San Jose that sold for $58 million.

For more information, please contact:
Sarah Bonnarens
Associate Director
CBRE Research
sarah.bonnarens@cbre.com

Giovanni Giannotta
Research Manager
CBRE Field Research
giovanni.giannotta@cbre.com
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