Silicon Valley office leasing rebounds for large blocks of space

Large-scale office leasing activity in Silicon Valley has accelerated, according to market data reported by the Silicon Valley Business Journal. The availability of contiguous office blocks measuring 100,000 square feet or larger has dropped by over 50% compared to 2023 levels, bringing demand for large blocks of office space toward highs not recorded since 2018.

Despite the recent pickup in large lease transactions, commercial real estate performance remains uneven across the region. Several submarkets and older commercial buildings continue to experience elevated vacancy rates.

Variations in commercial inventory are also reflected in local tax roll data across Santa Clara County. The county's total assessment roll rose by $34.4 billion, but individual municipality growth diverged. Sunnyvale recorded the highest increase at 7.17%, while Mountain View saw the slowest growth among cities at 2.93%.