Sunnyvale draws office tenants from San Jose

Downtown San Jose’s office vacancy reached 30.8% in the first quarter, even as major Bay Area leases landed in Sunnyvale’s Cityline and San Jose’s Santana Row. (mercurynews.com) Cushman & Wakefield reported first-quarter vacancy of 30.8% in downtown San Jose, 31.1% in San Francisco and 37.8% in downtown Oakland. The firm said downtown San Jose’s rate was the lowest of the three, but still trending higher. (mercurynews.com) (cushmanwakefield.com) The contrast is Sunnyvale, where Databricks has taken more than 455,000 square feet across 200 and 250 West Washington at Cityline. CrowdStrike also signed for about 150,000 square feet at 250 West Washington. (hunterproperties.com) (costar.com) Databricks first leased the full 305,000-square-foot building at 200 West Washington in July 2025, then added the final three floors at 250 West Washington in late 2025. Hunter Partners said that second deal completed the lease-up of the seven-story building. (databricks.com) (hunterproperties.com) The split says less about geography than about product. Brokers and developers have been reporting that tenants want newer offices near restaurants, housing and Caltrain, while older downtown towers draw less interest. (therealdeal.com) (sanjosespotlight.com) Cityline sits next to the Sunnyvale Caltrain station and was built as a mixed-use district with offices, apartments, shops and public events. San Jose Spotlight reported in September 2025 that Sunnyvale’s office vacancy was 18% in Cushman & Wakefield’s second-quarter market analysis. (therealdeal.com) (sanjosespotlight.com) Downtown San Jose is still landing deals, but owners are adjusting. One office tower there began seeking multiple tenants this month instead of one large occupant, a shift aimed at filling space faster. (eastbaytimes.com) Across Silicon Valley, Cushman & Wakefield said the overall office vacancy rate improved to 18.8% in the first quarter. The recovery is uneven, with demand concentrating in a smaller set of newer buildings and walkable districts. (cushmanwakefield.com)