Silicon Valley leasing activity reaches new heights

Leasing activity accelerated sharply in Q3 2026, reaching 4.9 million square feet (msf), up from 3.0 msf in the previous quarter and more than double the 2.3 msf recorded a year ago. The quarter marked a new post-pandemic high for leasing volume, bringing year-to-date activity to approximately 11.1 msf. Sunnyvale was the primary driver, accounting for more than half of quarterly volume, supported by several large transactions from major technology firms. While AI-related companies continue to contribute to Silicon Valley office demand, Q3 2026 leasing activity also included sizable commitments from established technology companies such as Google, Hewlett Packard Enterprise and Microsoft Corporation, underscoring the continued contribution of large technology occupiers alongside AI-related demand.

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