The Peninsula industrial market in Q4 2025 saw vacancy rates remain steady while availability ticked up slightly. Asking rents continued a modest upward trend, and leasing activity slowed compared to last year. Despite negative net absorption, sales volume surged significantly, highlighting strong investor interest. Explore the full report for detailed submarket performance and transaction insights.
4Q 2025 Peninsula Industrial Market: Key Data Points
- Vacancy Rate Holds Steady: Direct vacancy remained at 7.1%, unchanged year-over-year.
- Availability Edges Higher: Total availability increased to 9.5%, up 70 basis points from Q4 2024.
- Asking Rents Trend Up: Average direct asking lease rate reached $1.97/SF/month, a 1.5% YOY increase.
- Leasing Activity Slows: Quarterly leasing totaled 220,510 SF, contributing to a 10% annual decline.
- Sales Volume Surges: Industrial sales hit 1.17M SF in Q4, a 238.6% increase YOY.
- Net Absorption Negative: Q4 posted -27,365 SF, with -375,214 SF for the year.
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