The Peninsula industrial market in Q3 2025 saw vacancy and availability rates decline slightly, while asking rents remained stable. Leasing activity was modest, but net absorption turned positive for the quarter. Sales volume surged year-over-year, and submarket performance varied widely across the region. Explore our full Peninsula industrial market review for in-depth analysis and trends.
3Q 2025 Peninsula Industrial Market: Key Data Points
- Vacancy Rate Declines Slightly: Direct vacancy fell to 7.0%, down 50 bps year-over-year.
- Asking Rents Hold Steady: Average asking lease rate was $1.98 PSF NNN, down just 0.3% YOY.
- Net Absorption Turns Positive: Q3 posted 131K SF of net absorption, reversing prior negative trends.
- Sales Volume Doubles: YTD sales volume reached 883K SF, a 100.3% increase year-over-year.
- Leasing Activity Softens: YTD leasing volume totaled 755K SF, down 2.3% compared to 2024.
- South San Francisco Leads Leasing: Major deals included ZipLine and SSF Imported Auto Parts totaling over 150K SF.
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