I-680 Corridor Office Market Report

The following reflects I-680 Corridor/Tri-Valley office market conditions as of 2Q 2026.

The Tri-Valley office market is showing early signs of recovery, driven by a flight to quality despite relatively sluggish leasing activity. Leasing activity has gradually improved over the past several quarters as the market continues to absorb an elevated supply of available space. As of 2Q 2026, the overall office vacancy rate declined to 23.69%, while flex/R&D vacancy fell to 15.83%, reflecting stronger market fundamentals compared with a year ago.

Despite this progress, vacancy remains elevated across the Tri-Valley office market as tenants continue to reassess long-term space needs, consolidate operations, and reduce footprints. Recent leasing activity, however, suggests the market may be approaching stabilization. Performance varied across submarkets, with some areas demonstrating resilience while others continued to experience higher levels of availability.

Elevated vacancy has been driven by tenant move-outs, lease expirations, and additional space coming to market. At the same time, leasing activity remained steady, particularly in well-located, high-quality properties. New leases, expansions, and relocations helped offset some of the space returned to the market, underscoring tenant demand for modern, amenity-rich environments that support evolving workplace strategies. This continued preference for premium office space reinforces the flight-to-quality trend observed throughout the region.

Rental rates remained generally steady despite higher vacancy levels. Rather than significantly reducing asking rents, many landlords focused on offering concessions, flexible lease terms, and customized deal structures to attract and retain tenants. The market-wide average asking lease rate remained relatively stable at $3.09 PSF per month, a slight increase compared to last year. Class A rates closed the quarter at $3.33 PSF per month while Class B was $2.62 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 $3.42 PSF per month, followed by Dublin Class A at $3.37 PSF per month.

Investment sales and owner-user activity remained subdued during the quarter as buyers and occupiers continued to navigate uncertain market conditions. Smaller tenant requirements, however, helped support leasing activity and sustain transaction volume, even as larger users remained cautious about expansion. Several notable investment sales closed during the quarter. The largest transaction was Schnitzer’s acquisition of Sierra Trinity Business Park at 6693-6785 Sierra Court in Dublin for $57.5 million ($299 PSF); the 192,113-SF, 11-building project was 97% leased at the time of sale. Another significant sale was Dollinger Properties’ purchase of Poplar Plaza at 6630-6666 Owens Drive in Pleasanton, from Reynolds & Brown, for $13.6 million ($268 PSF); the four-building, 50,762-SF office project was originally constructed in 1983.

Arroyo Capital also acquired 18 Crow Canyon Court in San Ramon, a 54,000-SF office property, for $9.4 million ($174 PSF); the fully vacant asset, situated on approximately 2.91 acres, was purchased with plans for a future multifamily residential redevelopment, equating to roughly $3.23 million per acre ($74 per land SF). Additionally, Grant Private Wealth Management purchased the vacant 64,254-SF office building at 6000 Stoneridge Mall Road in Pleasanton from Workday, Inc. for $5.5 million ($95 PSF); the property was delivered fully furnished at closing.

Leasing activity was led by Blackhawk Network’s 62,060-SF renewal at Pleasanton Corporate Commons, located at 6220 Stoneridge Mall Road in Pleasanton; as part of the renewal, the company reduced its footprint and now occupies two full floors. Another notable transaction was Cloud Software Group’s expansion into 20,262 SF at Bishop Ranch-Sycamore, located at 2623 Camino Ramon in San Ramon; following the expansion, the company occupies approximately 53,774 SF within the project.

Looking ahead, market fundamentals are expected to remain challenged but stable. Continued leasing activity, coupled with efforts to reposition or convert underutilized office properties to alternative uses, should gradually reduce excess inventory and improve the supply-demand balance over time. Consistent demand from smaller tenants is expected to remain an important source of market support as the recovery continues to unfold.

Frequently Asked Questions

What is the office vacancy rate in the Tri-Valley office market in 2Q 2026?

The overall office vacancy rate in the Tri-Valley market was 23.69% in 2Q 2026, down compared with a year earlier, according to Kidder Mathews research. Flex/R&D vacancy was even lower, at 15.83%, over the same period. Vacancy remains elevated overall, but market fundamentals showed improvement compared with a year ago.

How does flex/R&D vacancy compare to traditional office vacancy in Tri-Valley?

Flex/R&D vacancy in the Tri-Valley market was 15.83% in 2Q 2026, notably lower than the overall office vacancy rate of 23.69%, according to Kidder Mathews research. This gap reflects stronger demand for flexible workspace relative to traditional office space in the region.

What is the average asking lease rate for office space in Tri-Valley in 2Q 2026?

The market-wide average asking lease rate in Tri-Valley was $3.09 PSF per month in 2Q 2026, a slight increase compared to a year earlier (Data source: CoStar). Class A space averaged $3.33 PSF per month, Class B averaged $2.62 PSF per month, and flex space averaged $2.35 PSF per month.

Which Tri-Valley submarket has the lowest office vacancy rate?

Danville/Alamo had the lowest overall vacancy rate in the Tri-Valley market at 7.17% in 2Q 2026, according to Kidder Mathews research. It also commanded the highest average asking rent in the market, at $3.42 PSF per month.

What were the largest office lease transactions in Tri-Valley in 2Q 2026?

The largest lease transaction was Blackhawk Networks’ 62,060 SF renewal at Pleasanton Corporate Commons, 6220 Stoneridge Mall Road in Pleasanton, where the company downsized to occupy two full floors. Cloud Software Group also expanded into 20,262 SF at Bishop Ranch-Sycamore, 2623 Camino Ramon in San Ramon, bringing its total footprint there to approximately 53,774 SF.

What was the largest office sale in Tri-Valley in 2Q 2026?

The largest sale was Schnitzer’s $57,500,000 ($299 PSF) acquisition of Sierra Trinity Business Park at 6693-6785 Sierra Court in Dublin, according to Kidder Mathews research. The 192,113 SF, 11-building project was 97% leased at the time of sale.

How active was investment sales activity in the Tri-Valley office market in 2Q 2026?

Investment sales and owner-user activity remained subdued in 2Q 2026 as buyers and occupiers navigated uncertain market conditions, according to Kidder Mathews research. Four notable sales closed during the quarter, ranging from $5,500,000 to $57,500,000, with smaller tenant requirements helping sustain leasing and transaction volume even as larger users stayed cautious about expansion.

Did net absorption improve in the Tri-Valley office market in 2Q 2026?

Net absorption increased year-over-year in the Tri-Valley market as of 2Q 2026, according to Kidder Mathews research, though specific absorption figures were not broken out in this report. Improved absorption coincided with declining vacancy and steady leasing activity in well-located, high-quality properties.

Is new office construction activity increasing in Tri-Valley?

New office deliveries in the Tri-Valley market held steady year-over-year as of 2Q 2026, according to Kidder Mathews research. Rather than new construction, market attention this quarter centered on efforts to reposition or convert underutilized office properties to alternative uses.

What is the outlook for the Tri-Valley office market in the second half of 2026?

Market fundamentals in Tri-Valley are expected to remain challenged but stable heading into the second half of 2026, according to Kidder Mathews research. Continued leasing activity, coupled with the repositioning of underutilized office properties, should gradually reduce excess inventory and improve the supply-demand balance, with smaller tenants expected to remain a key source of demand.

Last updated: 2Q 2026. Data source: CoStar, Kidder Mathews Research. Compiled by the Kidder Mathews Research Group.

2Q 2026 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.

• Office Vacancy Continues to Improve: Overall office vacancy declined to 23.69% in 2Q 2026, signaling improving market conditions compared to the prior year.
• Flex/R&D Sector Outperforms Traditional Office: Flex/R&D vacancy fell to 15.83%, outperforming the broader office market and demonstrating continued demand for flexible workspace solutions.
• Asking Lease Rates Hold Steady: The average asking lease rate remained stable at $3.09 PSF per month, while Class A office space averaged $3.33 PSF per month.
• Flight-to-Quality Trend Remains Strong: Leasing activity continued to favor well-located, amenity-rich Class A properties as tenants focused on high-quality workplace environments.
• Danville/Alamo Leads Regional Performance: Danville/Alamo recorded the region’s lowest vacancy rate at 7.17% and the highest average asking rent at $3.42 PSF per month.
• Notable Leasing Activity Supports Market Stability: Major transactions included Blackhawk Network’s 62,060 SF renewal in Pleasanton and Cloud Software Group’s 20,262 SF expansion in San Ramon.

Submarket Statistics by Property Class

Significant Sale Transactions 2Q 2026

Significant Lease Transactions 2Q 2026