{"id":406825,"date":"2026-07-21T18:09:12","date_gmt":"2026-07-21T18:09:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ca\/406825\/"},"modified":"2026-07-21T18:09:12","modified_gmt":"2026-07-21T18:09:12","slug":"south-bay-office-leasing-activity-hits-highest-level-since-late-2024","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ca\/406825\/","title":{"rendered":"South Bay office leasing activity hits highest level since late 2024"},"content":{"rendered":"

SAN JOSE \u2014 The South Bay office market has achieved its strongest three months of leasing activity in well over a year, a new report shows.<\/p>\n

Tenants leased a combined 2.7 million square feet in the South Bay<\/a> during the April-through-June second quarter of 2026, reported commercial real estate firm CBRE.<\/p>\n

It was the most square footage leased in the region since the October-through-December fourth quarter of 2024, when tenants completed leasing deals that totaled 3.1 million square feet, CBRE reported.<\/p>\n

The tech industry was credited with fueling much of the upswing.<\/p>\n

\u201cSoftware and artificial intelligence companies accounted for 55.6% of total leasing volume at 1.5 million square feet,\u201d CBRE stated in its report.<\/p>\n

Lease renewals accounted for 63%, or 1.7 million square feet, of the total amount of office space rented in the second quarter.<\/p>\n

\u201cThe market remains healthy with an increase in leasing activity primarily due to renewals,\u201d CBRE reported.<\/p>\n

As leasing activity improved, so did the area\u2019s vacancy rates.<\/p>\n

The South Bay rate was 15.2% in the second quarter, an improvement from the 15.4% vacancy level during the January-through-March first quarter of 2026, CBRE reported.<\/p>\n

New office construction in the region remains scarce.<\/p>\n

Two office projects are underway in Santa Clara, according to information provided in a separate report by commercial real estate firm Colliers.<\/p>\n

Arista Networks is building a complex at 5200 Patrick Henry Dr.<\/a> The company bought an office building at the site for $40 million in 2021, bulldozed the structure, and is now developing a headquarters totaling 245,000 square feet.<\/p>\n

Nvidia is developing an expansion of its headquarters in Santa Clara with the development of a 324,000-square-foot office building at 2400 Condensa Way.<\/p>\n","protected":false},"excerpt":{"rendered":"SAN JOSE \u2014 The South Bay office market has achieved its strongest three months of leasing activity in…\n","protected":false},"author":2,"featured_media":186558,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[29],"tags":[184,387,7,8,3010,1335,383,1533,181,23,194,100,14293,3012,388,88,90,89,197,198,2280,94685,200,203,1970,6994],"class_list":["post-406825","post","type-post","status-publish","format-standard","has-post-thumbnail","category-san-jose","tag-bay-area","tag-business","tag-california","tag-california-news","tag-commercial-real-estate","tag-development","tag-economy","tag-keywee","tag-latest-headlines","tag-local-news","tag-mountain-view","tag-news","tag-north-san-jose","tag-office-buildings","tag-real-estate","tag-san-jose","tag-san-jose-headlines","tag-san-jose-news","tag-santa-clara","tag-santa-clara-county","tag-silicon-valley","tag-social-alert","tag-south-bay","tag-sunnyvale","tag-technology","tag-west-san-jose"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/406825","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/comments?post=406825"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/posts\/406825\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media\/186558"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/media?parent=406825"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/categories?post=406825"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ca\/wp-json\/wp\/v2\/tags?post=406825"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}