Figures

Silicon Valley Office Figures Q3 2026

October 12, 2026 5 Minute Read

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  • Overall net absorption totaled 1.1 million square feet (msf) in Q3 2026, up from approximately 50,000 square feet of gains in Q2 2026.

  • The vacancy rate decreased from 15.1.% to 14.1% quarter-over-quarter (QoQ). The availability rate moved in the same direction, falling from 17.4% to 16.9%.

  • Combined Office/R&D tenant demand ended Q3 2026 at 12.4 msf, up from 9.3 msf posted at the end of Q2 2026. Tenants in the technology, hardware, software and AI sectors continued to drive requirements, representing approximately 52.0% of total requirements.

  • The average direct asking rate decreased to $5.15 on a monthly, direct (FSG) basis, down $0.12 QoQ and $0.44 year-over-year (YoY). The decline was driven by the leasing of premium, higher-priced inventory, reducing the amount of top-tier space available on the market rather than reflecting any weakening in market fundamentals.

  • New leases accounted for 62.8% of all leased sq. ft. signed in Q3 2026, with renewals and subleases making up the remaining 33.7% and 3.5%, respectively.

  • One project broke ground in Q3 2026, bringing the total space under construction to 382,000 sq. ft.