The Silicon Valley retail market in Q3 2025 remained stable in terms of vacancy, while asking rents dipped slightly. Construction activity surged, but no new deliveries were recorded. Sales pricing declined sharply, and net absorption remained negative. Explore our full Silicon Valley retail market report for detailed insights into leasing, investment, and development trends.
3Q 2025 Silicon Valley Market: Key Data Points
- Vacancy Rate Holds Steady: Retail vacancy remained unchanged at 4.0% year-over-year.
- Asking Rents Decline Slightly: Average asking rent fell to $3.06/SF, a 1.82% decrease from Q3 2024.
- Construction Pipeline Surges: Space under construction rose to 247,285 SF, a 210.3% increase year-over-year.
- Sales Prices Drop Sharply: Average sales price per square foot declined to $222, down 35.6% year-over-year.
- No New Deliveries: No construction deliveries were recorded YTD, compared to 36,739 SF in 2024.
- Net Absorption Negative: The market recorded -262,236 SF in net absorption YTD.
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