Figures

Silicon Valley Industrial Figures Q3 2026

San Jose industrial fundamentals strengthen amid robust demand

October 12, 2026 5 Minute Read

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  • Overall net absorption closed Q3 2026 at negative 154,373 square feet (sq. ft.), down from 1.1 million sq. ft. (msf) of gains in Q2 2026.

  • The vacancy rate rose from 4.0% to 4.5% quarter-over-quarter (QoQ) as 454,056 sq. ft. of new product delivered. The availability rate moved in the opposite direction, falling from 6.0% to 5.6%.

  • Tenant demand ended Q3 2026 at 8.7 msf, down 5.2 msf from the 13.9 msf posted at the end of Q2 2026. Tenants in the technology and AI ecosystem accounted for about 45% of requirements. In Q3 2026, there were 57 requirements with an average size of approximately 156,000 sq. ft. Most current available space lacks the features needed by today's users.

  • The average direct asking rate rose to $1.78 on a monthly, triple-net (NNN) basis, up $0.04 QoQ and $0.06 year-over-year (YoY), the highest rate on record.

  • New leases accounted for 62.2% of all leased sq. ft. signed in Q3 2026, with renewals making up the remaining 37.8%.

  • Three projects delivered 454,056 sq. ft., leaving 1.5 msf under construction.