Silicon Valley Data Centers Sit Power-Starved as CBRE Reports Record 1.4% National Vacancy
Why this matters
Industrial has moved into a normalization phase after the 2020-2023 frenzy. Vacancies are up modestly, sublease space remains a watch item in the big-box logistics segment, and rent growth has shifted from double-digit to mid-single-digit. The long-term tailwinds — nearshoring, e-commerce penetration, infill scarcity — remain intact. 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. Institutional capital is calibrating between core income and value-add basis plays as the cycle matures.
Editorial analysis · Real Estate Trail Editorial
On the RET wire
- The fourth San Francisco story tracked on the wire in September 2026. All San Francisco coverage →
- One of 14 industrial stories tracked on the wire in September 2026. All Industrial coverage →
- 108 stories mentioning CBRE on the wire in the past 90 days. CBRE coverage →
Computed from Real Estate Trail’s own tracked coverage
CBRE's North America Data Center Trends webinar for the first half of 2026 described a national supply crunch that plays out with a cruel twist in Silicon Valley, where inventory is plentiful but nearly 100 megawatts…
External link. Real Estate Trail does not republish source content.
Related coverage — San Francisco · Industrial
San Jose Rezones 544,000 SQFT IBM Almaden Campus, Igniting Data Center Fight
The San Jose City Council voted 9-2 to rezone the 35-acre developed core of IBM's former Almaden Research Center for industrial use, a move environmental groups warn could let a future data center sidestep environment…
CBRE Brokers $87.5M Sale of Nine-Building Industrial Portfolio in Benicia, California
BENICIA, CALIF. — CBRE has brokered the $87.5 million sale of a nine-building industrial portfolio in Benecia, part of the San Francisco Bay Area. NorthPoint Development purchased the buildings, which are located with…
Northpoint Pays $88M for Fully Leased Benicia Industrial Portfolio
CBRE has arranged the $87.5-million sale of a nine‑building, 534,550‑square‑foot industrial portfolio located in the Benicia Industrial Park in the San Francisco Bay Area to NorthPoint Development. Included in the sal…
Suffolk wins $278M California university dental school project
Using progressive design-build, the builder will deliver new educational, clinical and collaborative spaces on UC San Francisco’s Mission Bay campus.
PG&E Lists 21,000 SQFT ‘Power Bunker’ Substation in San Francisco’s SoMa, Targeting AI and Computing Buyers
Pacific Gas & Electric has hired JLL to find a buyer for the Power Bunker, its decommissioned former Substation I in South of Market, offering as much as 12 megawatts of power to artificial intelligence and computing…