MARKET TRENDS
- Vacancy rose to 9.3% in Q3 2025, up from 7.3% one year ago, as newly delivered space entered the market largely unleased. Net absorption totaled 0.2 million square feet (msf) year to date, well below 4.2 msf in Q3 2024.
- Asking rents averaged $0.78 per square foot, down 4.0% year over year. Leasing was led by logistics and distribution users, including the largest lease this quarter: Exel Inc.’s 334,657-sf renewal in the Mountain View Corridor West submarket.
- Deliveries reached 3.2 msf year to date, led by Quadrant III, which added 1.2 msf of vacant space. Construction dropped to 1.0 msf, with much of the pipeline tied to Novva Data Center’s build-to-suit projects in the Southwest submarket.