While leasing remained steady, landlords have been forced to offer generous concessions.

Vacancy improved by 270 basis points in the fourth quarter.

California CRE is highly interest-rate-sensitive due to high asset prices, leveraged ownership and large refinancing pipelines.

Leasing activity remains measured and deal sizes have continued to shrink.

San Francisco, Silicon Valley and Orange County are leading the way, according to Avison Young.

Crexi says the trend is reflected in strong cap rates for well-located, best-in-class assets.

Priority Capital is funding $174 million for the first phase.

The slight decline suggests that excess space accumulated during the broader tech slowdown is rebalancing.