Market Highlights

• Vacancy rose 540 basis points (bps) from Q3 2024 to 27.0%, driven by an increase in direct vacancy to 21.0%, while sublease availability edged down slightly to 6.0%.
• As projects reach completion, construction activity continues to slow, with 4.4 million square feet (msf) under construction, down approximately 37.0% from Q3 2024.
• Amid potential funding cuts, NIH allocations to the San Francisco Bay Area total $1.3 billion in fiscal year 2025, compared with $2.1 billion in fiscal year 2024.

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