Market Highlights

• Overall vacancy declined 20 basis points (bps) year over year to 23.8%. Sublease vacancy fell 130 bps to 3.7%, reflecting reduced excess tenant space, while direct vacancy increased to 20.1%.
• Venture capital funding moderated in 2026, with $8.3 billion raised across 428 deals through Q3, down 13.3% year over year. Despite the slowdown, funding remains in line with recent historical levels.
• Revolution Medicines leased approximately 672,000 square feet at the former Google-occupied Pacific Shores Center in Redwood City, representing one of the Bay Area’s largest recent life sciences leasing transactions.

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