- Mountain View has seen a sharp reversal, rising to the highest vacancy rate in the region (29.7%). Once a strong performer, the market has been hit hard by tech downsizing and persistent remote work trends, especially among large tenants.
- Santa Clara has emerged as the strongest recovery story, dropping to a market-low 17.9% vacancy. The city is benefiting from AI-related tenant growth, cost-effective office space, and low utility rates—making it attractive for power-intensive tech and R&D users.
- San Jose sits at 25.5% vacancy, reflecting a bifurcated market: demand remains strong for modern, well-located buildings, but older, legacy spaces continue to struggle with prolonged availability.
- Sunnyvale, at 20.9% vacancy, remains relatively stable but has yet to regain pre-pandemic momentum. While some AI and VC-backed activity has picked up, space givebacks from traditional tech users continue to offset gains.
Winners and laggards in the Silicon Valley office market
Winners and laggards in the Silicon Valley office market
