Figures

Silicon Valley R&D Figures Q3 2026

October 12, 2026 5 Minute Read

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  • Overall vacancy declined 50 basis points (bps) quarter-over-quarter (QoQ) to 12.9%, driven by decreases in both direct and sublease vacancy; however, vacancy remained 60 bps above the year-ago level.

  • Net absorption totaled 587,000 sq. ft. in Q3 2026, marking a second consecutive quarter of positive occupancy growth and the strongest quarterly performance since Q1 2025.

  • Leasing activity totaled 2.6 msf in Q3 2026, bringing trailing four-quarter volume to 8.3 msf. While activity declined slightly quarter-over-quarter, it increased 54.7% YoY, led by San Jose - North and Fremont/Newark.

  • Combined office/R&D tenant demand ended Q3 2026 at 12.4 msf, up 3.1 msf from the 9.3 msf posted at the end of Q2 2026. Tenants in the technology, hardware, software and AI ecosystem accounted for about 52.0% of requirements.

  • The construction pipeline totaled 940,000 sq. ft. at quarter-end, with no new deliveries during the quarter. All active projects were fully preleased and concentrated in Sunnyvale, San Jose–North and Santa Clara.