The Peninsula Industrial & R&D market in 1Q 2026 experienced rising vacancy across both segments, with leasing activity moderating and sales volume declining significantly year-over-year. Asking rents saw modest growth on the industrial side while remaining elevated in the R&D sector, and net absorption diverged sharply between product types. Explore our full Peninsula Industrial & R&D market review for submarket-level performance and detailed trend analysis.
1Q 2026 Peninsula Industrial Market: Key Data Points
Direct industrial vacancy increased to 8.0%, up from 7.1% YOY (90 bps increase). - R&D Vacancy Much Higher: Direct R&D vacancy reached 22.9%, with a total vacancy rate of 26.0% across the Peninsula.
- Asking Rents Trend Up for Industrial: Industrial direct asking rents increased to $1.96/SF/Mo, a 4.0% YOY gain.
- Leasing Activity Softens: Industrial leasing activity fell to 321,834 SF, a 15.9% YOY decrease. R&D leasing totaled 512,077 SF, also down from 2025.
- Sales Volume Drops Sharply: Industrial sales volume declined to 39,810 SF, an 86.8% YOY decrease.
- Industrial Net Absorption Negative: Industrial net absorption recorded –115,752 SF, continuing a multi-quarter negative trend. R&D absorption was +198,581 SF.
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