I-680 Corridor Office Market Report

The following reflects I-680 Corridor/Tri-Valley office market conditions as of Q3 2026.

MARKET DRIVERS

The Tri-Valley office market showed signs of stabilization in Q3 2026, with stronger leasing activity and slightly declining vacancy rates. Vacancy nevertheless remains elevated across the region as many occupiers continue to reevaluate long-term workplace strategies, consolidate operations, and right-size their footprints. Performance was mixed by submarket: some areas benefited from relatively steady tenant demand, while others still carry high levels of available space. Much of the current vacancy traces back to tenant move-outs and lease expirations over the past few years.

A decent pace of leasing has offset part of that availability, particularly in well-located, high-quality properties. New leases, renewals, expansions, and relocations point to continued appeal for modern, amenity-rich buildings that help employers attract and retain talent, reinforcing the flight-to-quality trend that has increasingly shaped leasing decisions across the region.

Rental rates were generally steady. Instead of cutting asking rents significantly, many landlords offered concessions, flexible lease terms, and customized deal structures. The market-wide average asking rate held at $3.10 PSF per month, a slight increase from last year. Class A closed the quarter at $3.35 PSF per month, Class B at $2.62, and Flex at $2.39. San Ramon Class A had the highest average asking rate at $3.53 PSF, followed by Danville/Alamo at $3.41 and Dublin Class A at $3.36.

ECONOMIC REVIEW

Investment sales and owner-user acquisitions were restrained during the quarter as buyers and occupiers continued to assess an evolving economic landscape. Smaller and mid-sized tenants kept driving market activity, supporting leasing momentum and deal volume even as many larger users stayed cautious and measured in their approach to expansion.

Several notable transactions still closed. The largest sale was Lennar Corporation’s purchase of 25 acres at 3000-5000 Executive Parkway in San Ramon for $156.0M ($143 PSF); the former Canopy campus will be redeveloped into 255 townhomes. Owner-user demand was also present: Courtney Inc. acquired 6998 Sierra Court in Dublin for $5.5M ($340 PSF) to support its expansion from Livermore, and in Pleasanton, Anchor Education Inc., dba OneSchool Global, bought 2340 Santa Rita Road for $4.0M ($359 PSF) and expects to occupy the entire building once the existing tenants depart.

Leasing was led by mid-sized deals. 1AU Technologies signed a 42,620 SF lease at 4696 Willow Road in Pleasanton, and Carlson, Barbee & Gibson renewed and expanded to 29,949 SF at Sycamore in San Ramon. STN leased an additional 25,849 SF at 4464 Willow Road in Pleasanton, bringing its total occupancy in the project to approximately 35,878 SF. Also in Pleasanton, Micro Motion Table Tennis Academy leased 23,146 SF at 1071 Serpentine Lane and MacKay & Somps renewed 20,404 SF at 5142 Franklin Drive.

NEAR-TERM OUTLOOK

Fundamentals are expected to remain relatively stable despite ongoing headwinds. Continued leasing and the gradual repositioning of underutilized office properties should help reduce excess inventory and improve supply-demand dynamics over time. Small and mid-sized tenants are expected to remain a key source of demand, laying a foundation for incremental improvement and a broader recovery as conditions normalize.

Frequently Asked Questions

What is the office vacancy rate in the I-680 Corridor/Tri-Valley in Q3 2026?

The combined vacancy rate for Class A and Class B office space in the I-680 Corridor/Tri-Valley was 22.99% in Q3 2026, according to Kidder Mathews research. Class A vacancy was 26.58%, Class B vacancy was 15.95%, and office-flex vacancy was 14.96%. Vacancy declined year over year but remains elevated as many occupiers continue to reevaluate long-term workplace strategies, consolidate operations, and right-size their footprints.

Which Tri-Valley submarkets have the highest and lowest office vacancy in Q3 2026?

Pleasanton Class A had the highest vacancy among the reported submarket segments at 39.58% in Q3 2026, while Danville/Alamo had the lowest at 8.83%, according to Kidder Mathews research. San Ramon Class A vacancy was 15.44% and Dublin Class A vacancy was 21.93%. Livermore Class B vacancy was 22.63%, and San Ramon flex vacancy was 28.03%.

How much sublease space is on the market in the I-680 Corridor/Tri-Valley office market in Q3 2026?

Marketed sublease space totaled 842,223 SF across Class A and Class B office in the I-680 Corridor/Tri-Valley in Q3 2026, according to Kidder Mathews research. That included 712,500 SF of Class A and 129,723 SF of Class B space, plus 178,682 SF of office-flex space. San Ramon Class A held the most marketed Class A sublease space at 453,405 SF.

What are average office asking rents in the I-680 Corridor/Tri-Valley in Q3 2026?

The market-wide weighted average asking rent for Class A and Class B office space was $3.10 PSF per month in Q3 2026, a slight increase from a year earlier, according to Kidder Mathews research. Class A averaged $3.35, Class B averaged $2.62, and flex averaged $2.39 PSF per month. By submarket, Class A and Class B rents ranged from $2.17 PSF per month for Livermore Class B to $3.53 for San Ramon Class A, followed by Danville/Alamo at $3.41 and Dublin Class A at $3.36.

How is office leasing activity in the I-680 Corridor/Tri-Valley in Q3 2026?

Leasing activity in the I-680 Corridor/Tri-Valley office market improved in Q3 2026 and was led by mid-sized transactions, according to Kidder Mathews research. 1AU Technologies leased 42,620 SF at 4696 Willow Road in Pleasanton, Carlson, Barbee & Gibson renewed and expanded to 29,949 SF at Sycamore in San Ramon, and STN expanded by 25,849 SF at 4464 Willow Road in Pleasanton. Many landlords relied on concessions, flexible lease terms, and customized deal structures rather than significant rent reductions.

What is net absorption in the I-680 Corridor/Tri-Valley office market in Q3 2026?

Kidder Mathews’ Q3 2026 year-over-year indicators show office absorption increasing in the I-680 Corridor/Tri-Valley, alongside declining vacancy. Net absorption is the change in occupied space over a period, so a positive figure means more space was taken than vacated. The report does not publish a net absorption total in square feet for the quarter.

How much new office construction is underway in the I-680 Corridor/Tri-Valley in Q3 2026?

Kidder Mathews’ Q3 2026 report does not list an under-construction square footage figure for the I-680 Corridor/Tri-Valley, and its year-over-year indicator shows new deliveries unchanged. The largest Q3 sale, Lennar Corporation’s purchase of 3000-5000 Executive Parkway in San Ramon, involves redeveloping the former Canopy campus into 255 townhomes.

What was the largest office sale in the I-680 Corridor/Tri-Valley in Q3 2026?

The largest sale was Lennar Corporation’s acquisition of 25 acres at 3000-5000 Executive Parkway in San Ramon for $156.0M, or $143 PSF, according to Kidder Mathews research. The former Canopy campus will be redeveloped into 255 townhomes.

What was the largest office lease in the I-680 Corridor/Tri-Valley in Q3 2026?

The largest lease was 1AU Technologies’ 42,620 SF R&D/Flex lease at 4696 Willow Road in Pleasanton, according to Kidder Mathews research. The next largest was Carlson, Barbee & Gibson’s 29,949 SF renewal and expansion at Sycamore, 2633 Camino Ramon in San Ramon, followed by STN’s 25,849 SF expansion at 4464 Willow Road in Pleasanton.

Are owner-users buying office buildings in the I-680 Corridor/Tri-Valley in Q3 2026?

Yes, owner-user demand remained present in Q3 2026, though investment sales and owner-user acquisitions overall were restrained, according to Kidder Mathews research. Courtney Inc. bought 6998 Sierra Court in Dublin for $5.5M ($340 PSF) to support its expansion from Livermore. Anchor Education Inc., dba OneSchool Global, bought 2340 Santa Rita Road in Pleasanton for $4.0M ($359 PSF) and is expected to occupy the entire building after the existing tenants depart.

What is the outlook for the I-680 Corridor/Tri-Valley office market after Q3 2026?

Kidder Mathews research expects Tri-Valley office fundamentals to remain relatively stable despite ongoing headwinds. Continued leasing activity and the gradual repositioning of underutilized office properties should help reduce excess inventory and improve supply-demand dynamics over time. Small and mid-sized tenants are expected to remain a key source of demand, supporting incremental improvement.

Last updated: Q3 2026. Data source: Kidder Mathews research. Compiled by the Kidder Mathews Research Group.

Q3 2026 I-680 Corridor/Tri-Valley Office Market: Key Data Points

Explore our full I-680 Corridor/Tri-Valley office market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy: Class A and Class B office vacancy was 22.99% (Class A 26.58%, Class B 15.95%), and flex vacancy was 14.96%. Vacancy declined year over year but remains elevated.
• Asking rents: The weighted average asking rent was $3.10 PSF per month, a slight increase from last year. Class A averaged $3.35, Class B $2.62, and Flex $2.39.
• Inventory: The market includes 14,662,160 SF of competitive multitenant Class A and B office space (9,708,216 SF Class A, 4,953,944 SF Class B) and 5,663,101 SF of office-flex space.
• Sublease space: Marketed sublease space totaled 842,223 SF in Class A and B office and 178,682 SF in flex. San Ramon Class A accounted for 453,405 SF.
• Submarket extremes: San Ramon Class A had the highest asking rent at $3.53 PSF per month. Pleasanton Class A had the highest vacancy at 39.58%, and Danville/Alamo the lowest at 8.83%.
• Largest sale: Lennar Corporation bought 25 acres at 3000-5000 Executive Parkway in San Ramon for $156.0M ($143 PSF) for redevelopment into 255 townhomes.
• Largest lease: 1AU Technologies leased 42,620 SF of R&D/Flex space at 4696 Willow Road in Pleasanton.

Submarket Statistics

Significant Sale Transactions Q3 2026

Significant Lease Transactions Q3 2026