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AI- and tech-fueled leasing surge meets elevated availability headwinds
The Silicon Valley office market recorded a post-pandemic high of 3.2 million square feet (sf) in quarterly leasing, representing a 1.7 msf increase from the previous quarter, driven by major tech and AI tenants including OpenAI, Databricks, and Apple. Supported by a deep talent pool and strong venture capital backing, Silicon Valley remains at the forefront of innovation and growth. The technology sector dominated the quarter’s largest transactions, accounting for all 10 of the top deals. Santa Clara and Sunnyvale led the market, securing seven of those transactions.