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What is the San Francisco Silicon Valley’s Sub-Lease Market Impact on Commercial Property Values in 2025

Esquire Property Management Group

The Sublease Market 2025 is shaping the landscape, with sublease space dropping by 3% in the fourth quarter of 2024, falling below 8 million square feet for the first time since 2022. Owners and Property Managers Are Offering More Flexible Lease Terms Provide tailored leasing options to accommodate tenant and sub-lessee needs.

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Q3 Silicon Valley Commercial Real Estate Outlook

Esquire Property Management Group

Despite a 90 basis points increase in the overall vacancy rate to 12.5%, average asking rents remained surprisingly near historic highs at $5.37 The slight decrease in asking rents, down 0.9% million square feet recorded in the same period of 2022. Year-over-year asking rents rose by 7.5% per square foot Full Service.