MARKET TRENDS
- Vacancy averaged 9.1% in Q4 2025, up year over year but down slightly from Q3. Net absorption reached 0.6 million square feet (msf) year to date, led by large leases in Northwest and Mountain View Corridor West submarkets.
- Deliveries reached 3.3 msf in 2025 while construction dropped to 2.5 msf. Two large build-to-suit projects, Novva Data Center Phase 2 and 3, are set to complete in late 2026, contributing to a shrinking pipeline with limited speculative space.
- Asking rents held steady at $0.78 per square foot for the third straight quarter. Demand remained active, driven by renewals and newer space in prime locations, keeping activity concentrated in a few key areas.