Retail leasing surges in San Jose as lifestyle and entertainment concepts drive demand

San Jose’s retail market posted its highest leasing volume in eight years during the first three quarters of 2025, signaling resilience amid economic headwinds. Leasing activity reached more than 1.4 million square feet, up from 1.3 million in 2024 and reversing the sluggish performance seen in 2023. This surge reflects Silicon Valley’s income growth and evolving consumer preferences, even as tech layoffs and high interest rates temper optimism.