South Peninsula Office Market Report
The South Peninsula market posted 873,411 square feet of gross absorption in Q3, keeping the region on track to hit the 15-year historic average of 3.5 million square feet for the year. The South Peninsula market saw a significant uptick in total transactions this quarter, with volumes climbing 14.7% over Q2 2025. Palo Alto and Menlo Park were the standout performers, driving 31% and 33% of total absorption respectively, with both cities logging over 270,000 square feet of leasing activity in Q3.
Download South Peninsula Office Market Report 3Q25
South Peninsula R&D Market Report
The South Peninsula market experienced subdued leasing activity, registering below the five-year average for the third consecutive quarter. As mentioned in our last report, the subdued leasing numbers seem to be a long-term trend as opposed to an anomaly. The Life Science activity in the South Peninsula has been extremely dormant comprising of primarily renewals and extensions. The South Peninsula R&D market has reached its highest historical vacancy rate of 19.5%. This upward trend in vacancy is primarily attributable to two newly constructed developments being introduced to the market in 2025. The South Peninsula market experienced subdued leasing activity, registering below the five-year average for the third consecutive quarter. As mentioned in our last report, the subdued leasing numbers seem to be a long-term trend as opposed to an anomaly.
Download South Peninsula R&D Market Report 3Q25