Sunnyvale’s property values grew faster than any other city in the county last year — a sign of a diversifying local economy even as neighboring cities grapple with rising office vacancies.
The county assessor’s yearly assessment of the increase in the tax base — called “roll growth” — showed that Sunnyvale’s 7.17% growth outpaced every other city in Santa Clara County, according to figures released by the assessor’s office in July.
“Sunnyvale just has the right mix. When you look at residential, commercial, office space … they have a good mix of all sectors,” said County Assessor Neysa Fligor. “They are diversifying, and they are making good investments … Right now, Sunnyvale has a really good balance.”
Google’s new campus and Intuitive Surgical were among the big-ticket properties in Sunnyvale.
Countywide, the roll increased 4.74%, up from last year’s 4.15% increase. This year’s roll hit a new high of $760.1 billion, an increase of $34.4 billion over 2025.
The leading contributors to roll growth are ownership changes, inflation and new construction. California’s Prop. 13 caps a property’s increased assessment to the consumer price index (CPI) or 2%, whichever is lower. Conversely, Prop. 8 requires the assessor to temporarily lower a property’s assessment if its market value drops below its Prop. 13 value.
Ownership changes accounted for $16.9 billion, while inflation contributed $14 billion, and $4.9 billion came from new construction. Residential properties are always the primary growth driver, Fligor said. Business and personal property assessments jumped 7%, to $54 billion, a “surprising” increase tied to rising material and equipment costs from tariffs.
Increased exemptions totaling $1.6 billion, $3.3 billion in Prop. 8 reductions and $125 million in roll corrections offset the increases.
Santa Clara didn’t fare as well as Sunnyvale, seeing only a 3.74% growth. However, Fligor said her office considers Santa Clara stable. With a good mix of data centers and residential, Santa Clara’s weakness is its lack of commercial space, especially office space.
“The vacancies that we are seeing in San Jose and Santa Clara, we are not seeing them in Sunnyvale,” Fligor said.
Increasing vacancies, declining rental rates, the absence of big leasing deals, and the continuation of hybrid and remote working have kept the office vacancy rate in Silicon Valley at roughly 20% for the past two years, according to the assessor’s office.
An increasing number of office buildings are selling for less than assessed value. Additionally, foreclosures from delinquent loans are becoming more frequent—a strain reflected by 98% of the $153.6 billion of assessed value under appeal being commercial properties.
Prop. 8 properties nearly tripled, from 8,699 to 24,727. Increases in commercial reductions cut the roll by more than $5.6 billion.
Communities that have desirable destinations near office space often see higher occupancy rates, Fligor said. Cities that convert unused office space and maintain some that meets demand strike an equilibrium that leaves the city well-positioned.
Although Santa Clara has seen a decent amount of development near Levi’s Stadium, and has a strong residential market, it has struggled to maintain or add amenities throughout the city.
High-performing public schools are typically one of the biggest draws, but other attractions do similar work, Fligor said.
“There are some entities and buildings and amenities that will attract people to want to live near those amenities,” Fligor said. “Big amenities attract other businesses.”
Public schools and community colleges are the biggest beneficiaries of property tax revenue, with more than half going to fund public education.
Formal appeals are due to the clerk of the Santa Clara County Board of Supervisors, 70 West Hedding St., in San Jose, by Sept. 15. As of June, the office charges a $290 filing fee for residential appeals.
Contact David Alexander at d.todd.alexander@gmail.com
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