Tri-Valley market continues to experience elevated vacancies, stable rents, and increased activity from small to mid-sized tenants.
Over the past several quarters, leasing momentum has remained sluggish as the region works through a surplus of available space. By the close of 4Q 2025, the overall office vacancy rate stood at 27.64%, marking a slight improvement from the previous year. In contrast, flex/R&D space posted an 18.81% vacancy rate, edging up slightly year‑over‑year.
A clear flight-to-quality trend is emerging. Class A vacancy tightened to 31.91%, while Class B space saw vacancies rise to 18.79%. Still, conditions vary widely by location: Pleasanton’s Class A market ended the quarter with a notably high 40.96% vacancy rate, whereas San Ramon and Dublin posted lower, yet still elevated, Class A vacancy rates of 27.37% and 20.67%, respectively. These figures underscore the uneven demand dynamics and persistent vacancy challenges within many Tri‑Valley submarkets.
The market wide average asking lease rate remained relatively stable at $3.10 PSF per month, a slight increase over the first half of the year and a slight increase from the end of 2024. Class A rates closed the year at $3.31/SF per month while Class B was $2.65 PSF per month and Flex rents remained at $2.35 PSF per month. The highest average asking rate can be found in Danville/Alamo at $ $3.41 PSF per month and San Ramon Class A at $3.41 PSF per month, followed by Dublin Class A at $3.37 PSF per month.
During the past quarter, investment sales and owner‑user transactions slowed noticeably. Buyers and occupiers continued to approach the market cautiously, and this resulted in fewer completed deals. While overall activity remained muted, there was a measurable increase in smaller tenant requirements. Companies seeking spaces under 5,000 SF were more active than in previous quarters, and this segment provided some stability in an otherwise quiet leasing environment.
4Q 2025 Tri-Valley Office Market: Key Data Points
Explore our full Tri-Valley office market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Overall Vacancy Holds Elevated: Market-wide office vacancy closed at 27.64%, showing only slight improvement year-over-year.
- Class A Vacancy Tightens Slightly: Class A vacancy registered 31.91%, with pronounced differences by submarket—Pleasanton at 40.96%, San Ramon at 27.37%, and Dublin at 20.67%.
- Asking Rents Remain Stable: The average asking rate held at $3.10 PSF/month, with Class A at $3.31, Class B at $2.65, and Flex at $2.35. Danville/Alamo and San Ramon Class A were highest at $3.41 PSF.
- Small-Tenant Activity Increases: Tenants under 5,000 SF were the most active segment, helping offset reduced demand from larger occupiers.
- Flex/R&D Vacancy Edges Up: Flex/R&D vacancy reached 18.81%, a slight year-over-year increase.
- Sales Activity Slows: Investment and owner-user transactions declined, with notable transactions including PG&E purchasing 5928 Stoneridge Mall Road (209,000 SF) and multiple smaller Pleasanton deals closing.
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