Silicon Valley Leasing Hits 7.8 Million Square Feet as South Bay Vacancy Stays at 22.5%
Updated
Updated · San José Spotlight · Jun 22
Silicon Valley Leasing Hits 7.8 Million Square Feet as South Bay Vacancy Stays at 22.5%
1 articles · Updated · San José Spotlight · Jun 22
Summary
Nearly 300 Silicon Valley lease transactions totaling 7.8 million square feet were signed in Q1, the region’s strongest leasing quarter since 2022.
South Bay office vacancy still stood at 22.5%—above dot-com bust levels—with roughly 30 million square feet empty, leading one local developer to say a full recovery could take another decade.
Russell Hancock of Joint Venture Silicon Valley said remote work is no longer the main drag; instead, slow local hiring, economic uncertainty, AI-driven caution and the region’s high cost of living are keeping offices unfilled.
AI firms including OpenAI, Databricks and CrowdStrike helped lift demand, but the rebound is uneven: Cupertino’s vacancy rate is just 3.4%, while downtown San Jose, Mountain View and Campbell remain at 30% or higher.