Savills: Silicon Valley Office Leasing Hits Post-Pandemic High of 4.9 Million SQFT
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.
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On the RET wire
- The 15th San Francisco story tracked on the wire in October 2026. All San Francisco coverage →
- One of 43 office stories tracked on the wire in October 2026. All Office coverage →
- 24 stories mentioning Savills on the wire in the past 90 days. Savills coverage →
Computed from Real Estate Trail’s own tracked coverage
Silicon Valley office leasing more than doubled year over year to 4.9 million square feet in the third quarter of 2026, with Sunnyvale capturing more than half of the volume as Google, Amazon, Hewlett Packard Enterpri…
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