MARKET TRENDS
- Vacancy rose to 8.3% in Q2 2025, up from 7.8% one year ago, as move-outs outpaced new demand. Net absorption turned negative, totaling -100,000 square feet year to date, compared with 3.0 million square feet (msf) of positive absorption in Q2 2024.
- Average asking rents held steady at $0.76 per square foot (psf), unchanged year over year. Leasing remained consistent, led by third-party logistics (3PL) and distribution users. Activity was driven by mid-sized and large users, while demand for smaller footprints was more uneven.
- Construction fell to 2.5 msf, down from 4.0 msf one year ago, with deliveries at just 1.4 msf year to date. The Northwest led in completions while Mountain View Corridor West has the largest pipeline, driving high availability despite strong demand.