The Silicon Valley retail market in 1Q 2026 remains stable, with vacancy holding steady and asking rents showing modest growth. Development activity continues at a measured pace, highlighted by a rising construction pipeline and significantly reduced deliveries, while strong positive absorption reflects renewed tenant expansion across the region. Explore the full 1Q 2026 Silicon Valley retail market report for deeper insights into retail fundamentals, investment trends, and leasing performance.
1Q 2026 Silicon Valley Market: Key Data Points
- Vacancy Rate Holds Steady: Retail vacancy registered 3.8%, unchanged year-over-year.
- Asking Rents Edge Up: Average asking rent reached $3.11/SF per year, a 0.65% YOY increase.
- Construction Pipeline Expands: Under-construction space climbed to 135,000 SF, a 41.68% YOY increase.
- Deliveries Drop Sharply: Construction deliveries totaled 10,285 SF, a 72.01% YOY decrease.
- Positive Net Absorption: Net absorption reached 116,466 SF, reflecting improved tenant activity.
- Sales Pricing Rises: Average sales price increased to $492/SF, up 8.66% YOY.
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