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North Peninsula Market Reports

North Peninsula Office Market

Average FS Asking Rent (Price/SF)            $4.77
Availability Rate(%)         11.05%
Net Absorption (SF)      100,079

Vacancy decreased and average rates increased in seven out of the 12 major submarkets in San Mateo County this quarter. The county's current Class A Vacancy now stands at 13.59%, up slightly from 13.57% in the prior quarter, while the overall Class A rate peaked at $5.01/SF Full Service, tied with third-quarter 2016.

  North Peninsula Industrial Market

Average NNN Asking Rent (Price/SF)      $2.68
Availability Rate (%)      2.64%
Net Absorption (SF)     51,727

The San Mateo County industrial market closed the third quarter of 2017 at 2.41% vacancy, down slightly from 2.42% in the prior quarter. This marks the seventh consecutive quarter in which the vacancy rate remained below 3.0%. However, industrial leasing activity diminished during the quarter, as 407,501 square feet of gross absorption was recorded. This is not uncommon during the summer months, and it is in line with the current state of the industrial market, where low availability is constraining market activity. Overall net absorption for the county's industrial market totaled negative 41,237 square feet, the first major instance of negative absorption since the third quarter of 2016. This swing in absorption is no cause for alarm, however, as this fluctuation was caused by several large blocks of space hitting the market this quarter. The most notable contributor to the negative absorption was the 96,795-square-foot direct availability at 1635 Rollins Road in Burlingame, which was previously leased to Classic Party Rentals. The San Mateo County R&D market closed the quarter at 3.1% vacancy, down from 3.2% in the prior quarter and 3.3% a year ago. The overall asking rate for the county increased to $4.49/SF NNN, up from $4.22/SF NNN in the prior quarter, while individual asking rates increased or remained stagnant in nine out of the 10 major submarkets. Similar to the prior quarter, the San Mateo County R&D market recorded light activity this quarter, totaling 407,096 square feet of gross absorption.

North Peninsula Office Market Report
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North Peninsula Industrial Market Report
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