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North Peninsula Market Reports

North Peninsula Office Market

Average FS Asking Rent (Price/SF)       $5.32
Availability Rate(%)         9.4%
Net Absorption (SF)  -106,924

The North Peninsula's average asking rate is currently $5.32/SF full service, down slightly from $5.35/SF in the prior quarter. Overall availability decreased this quarter to 9.4%, down from 9.7% at the close of the prior quarter. On the sublease front, availability accounted for 2.4% of the total inventory and 33.3% of the total availability. By comparison, in the previous quarter, sublease space accounted for 2.8% of the total inventory and 28.4% of the total availability. Tenant demand decreased 16.6% in the third quarter of 2019 to 3.0 million square feet, with the bulk of the requirements now in the 10,000 to 19,999-square-foot-range. Currently, the construction pipeline holds approximately 3.0 million square feet awaiting completion, with 357,507 square feet expected to be delivered next quarter. The largest completion of the quarter was a portion of the Stanford Research Campus in Redwood City located at 415 Broadway, totaling 107,243 square feet. In San Mateo, 405 East Fourth Avenue also completed construction this quarter, delivering 62,338-square-feet of pre-leased inventory to the downtown market.

  North Peninsula Industrial Market

Average NNN Asking Rent (Price/SF)        $2.91
Availability Rate (%)          4.4%
Net Absorption (SF)  -681,279

 

The North Peninsula R&D market ended the third quarter of 2019 with an overall vacancy of 5.3%, up from 4.4% in the previous quarter but down from 6.2% one year ago. On the sublease front, availability accounted for 2.0% of the total inventory and 37.3% of the total availability. By comparison, in the previous quarter, sublease space accounted for 1.9% of the total inventory and 44.1% of the total availability. The market's average asking rate is currently $4.01/SF NNN, down from $4.35/SF in the prior quarter. The R&D leasing market picked up slightly this quarter, recording 684,992 square feet of absorption compared with 372,116 square feet in the previous quarter. There were eight completed lease transactions greater than 20,000 square feet recorded this quarter, compared with two transactions executed in the previous quarter.

 



North Peninsula Office Market
3Q19
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North Peninsula Industrial Market
3Q19
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