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South Peninsula Market Reports

South Peninsula Office Market Report

Average NNN Asking Rent (Price/SF)       $5.79
Availability Rate (%)         8.5%
Net Absorption (SF)
 -109,413

Heightened uncertainty in the national and global economic markets of the past 12 to 18 months has had little impact on South Peninsula leasing activity. The lengthy growth cycle has had many market observers concerned the market is nearing a downturn, yet gross absorption for 2019 was nearly 300,000 square feet greater than that of the 2018 total. Gross absorption tracks the overall activity and can be a leading indicator for the level of velocity in the leasing market.

South Peninsula R&D Market Report

Average NNN Asking Rent (Price/SF)  $5.35
Availability Rate (%)    7.7%
Net Absorption (SF)  4,116

The South Peninsula R&D sector is looking for a rebound in 2020. Specifically, the Stanford Research Park submarket, which currently accounts for 40% of the total availability on the South Peninsula. We remain positive, considering transactions in progress and also demand touring actively in the marketplace. The hope is that these requirements remain in our market and land significant square footage on the South Peninsula before mid-year. Absorption for the fourth quarter moved upward significantly by close to 300,000 sf, moving net absorption into positive territory. The approximately 550,000-square-foot former HPE Campus at 3000 Hanover Street in the Stanford Research Park is still available, but tour activity has picked up significantly, showing positive signs that a transaction or transactions will occur prior to mid-2020. There has been some resistance to the high tags on second and third generation spaces, requiring landlords to be more flexible in expectations of rents and concessions. Landlords are coming to the realization that significant capital is required to be attractive enough to keep large requirements from moving to higher quality new developments outside of the South Peninsula where tenants also find deep rental rate discounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



South Peninsula Office Market Report
4Q19
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South Peninsula R&D Market Report
4Q19
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