MBZUAI’s Institute of Foundation Models Leases 27,000 SQFT Former LinkedIn Office in Sunnyvale’s Peery Park
Why this matters
Office continues to trade in two distinct markets: trophy assets in walkable submarkets that are leasing at or near record rents, and commodity Class B and C buildings where the basis is still resetting. Underwriting on the latter has moved toward replacement-cost-minus, with credit underwriting now leaning on tenant covenant and remaining lease term rather than mark-to-market expectations. San Francisco continues to clear office at the deepest discounts to 2019 basis seen in the cycle, while multifamily fundamentals have stabilized and life sciences in the Peninsula remains active. For LP-positioned capital, the read-through is that the bifurcation is now a structural feature of the sector, not a cycle to wait out.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The 63rd San Francisco story tracked on the wire in November 2026. All San Francisco coverage →
- Disclosed office deal value tracked in November 2026: $5.8B across 26 reported transactions. All Office coverage →
Computed from Real Estate Trail’s own tracked coverage
A former LinkedIn office that sat empty for years is fully leased again as Sunnyvale office vacancy drops to 10.3 percent, the steepest decline among Silicon Valley submarkets. The Institute of Foundation Models, the…
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