MARKET TRENDS
- Deliveries continue to push vacancy upward, reaching 14.9% in Q3 2025. The market saw 8.7 million square feet (msf) delivered in 2025. With approximately 15.0 msf under construction, vacancy will likely continue to increase.
- While year-to-date net absorption lags the prior year at 8.7 msf, the demand outlook remains optimistic. Samsung and Tesla announced this quarter a $16.50 billion partnership, sparking additional interest in the area.
- Asking rents continue to show signs of softening, with a 4.5% year-over- year decrease in Q3 2025, averaging $10.86 per square foot (psf). Looking ahead, asking rents will likely continue to soften as new deliveries come online and vacancy rises.