Q2 2026 - Silicon Valley’s commercial space pipeline continued to contract through the second quarter of 2026, as in-progress development fell to its lowest level since 2012. Industrial and lab space accounted for all new development activity in the first half of 2026, while three of the past four quarters saw no new office completions.
Leasing activity remained strong, even as vacancy rates neared their highest levels since 2003 and asking rents continued to decline. Industrial was the only space type to see rising rents in 2026.
