Silicon Valley office market shows vacancy improvement after weak stretch

Vacancy levels in the South Bay office market improved to 16.4% in the first quarter of 2025, up from 16.6% in the previous quarter but worse than 16% a year earlier. Rental rates also increased, with the average asking rent at $5.41 per square foot, higher than both the previous quarter and the same period last year. Additionally, the sublease rate decreased to 4.3%, down from 4.7% in the last quarter and 5.5% a year ago, indicating a positive trend in the Silicon Valley office market.