Q2 2025 Silicon Valley Office Occupier's Guide
The Silicon Valley office market had a strong first half of the year. A recent flurry of leasing activity pushed vacancy down 0.1% quarter-over-quarter (QoQ). Net absorption was positive for the quarter at 319K SF, bringing the year-to-date (YTD) total to 388K SF. Despite the positive momentum, average asking rates declined 1.4% QoQ to $5.03 and 3.7% year-over-year (YoY). Some submarkets are an exception. Sunnyvale saw asking rates rise 3.4% QoQ while red-hot Palo Alto continues to command the highest asking rent at $7.92 per SF, 62.0% above the Silicon Valley average.
After a lackluster start to 2025, the Silicon Valley office market had a breakout second quarter. Leasing activity surged by 39.8% QoQ. Meanwhile, tech giants like Apple underscored their confidence in the region, investing over $500 million in office acquisitions during Q2 alone. With both leasing momentum and capital commitments in play, the Silicon Valley office market looks poised for a strong second half of the year.
After a lackluster start to 2025, the Silicon Valley office market had a breakout second quarter. Leasing activity surged by 39.8% QoQ. Meanwhile, tech giants like Apple underscored their confidence in the region, investing over $500 million in office acquisitions during Q2 alone. With both leasing momentum and capital commitments in play, the Silicon Valley office market looks poised for a strong second half of the year.