Winners and laggards in the Silicon Valley office market
Winners and laggards in the Silicon Valley office market
- 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.