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Sublease supply shrinks, but large blocks remain available
In Q2 2025, the total availability rate in the Silicon Valley office market declined by 109 basis points (bps) from the previous quarter and 350 bps year over year, reaching 25.7%. Sublease availability also continued to decline, falling to 5.3 million square feet (msf), a decrease from 2.4 msf year over year and 0.8 msf quarter over quarter. A key contributor to this reduction was Zscaler’s 301,163 square-foot (sf) sublease from Airbnb at 4301 and 4401 Great America Parkway in Santa Clara. Despite the reduction in sublease inventory, large-block sublease spaces previously listed by major tech firms, including Google’s at Moffett Towers remain available, offering tenants substantial options and maintaining strong negotiating leverage as the market enters the second half of 2025.