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North Peninsula Market Reports

North Peninsula Office Market

Average FS Asking Rent (Price/SF)            $4.91
Availability Rate(%)         10.72%
Net Absorption (SF)      159,786

The San Mateo County office market has recorded its third consecutive quarter of positive net absorption and fourth consecutive quarter of overall rate rental growth. Overall rates are up $0.10/SF from $4.81/SF in the previous quarter, while the overall vacancy for the county was recorded at 10.7%, down from 11.2% in the previous quarter. The county's current sublease vacancy now stands at 2.4%, down from 3.1% in the prior quarter and down slightly from 2.5% a year ago.

  North Peninsula Industrial Market

Average NNN Asking Rent (Price/SF)      $2.88
Availability Rate (%)      2.82%
Net Absorption (SF)  -391,185

The North Peninsula industrial market took a step backwards to start the year, as overall vacancy increased to 2.8%, up from 2.4% in the previous quarter, and overall rates decreased or remained stagnant in nine out of the 12 major submarkets. Net absorption was down for the fourth consecutive quarter, totaling negative 161,861 square feet, as three new warehouse properties over 25,000 square feet hit the market in South San Francisco. At 439 Eccles Avenue, a 40,200-square-foot warehouse had become available for lease in early January and was already under negotiation with a tenant at the close of the quarter. The warehouse will more than likely be leased once the interested party obtains a conditional use permit to utilize the space. At 137 Utah Avenue, a 40,000-square-foot warehouse became available this quarter, as the previous tenant, Saga Musical Instruments, was ready to vacate the premises. In addition, a 30,000-square-foot warehouse became available at 221 Michelle Court in early February. In San Mateo, 33,778 square feet at 980 Amphlett (S) Boulevard in San Mateo became available, and in Brisbane, the 71,207-square foot warehouse at 430 Valley Drive also hit the market, causing the county's industrial vacancy to peak at a level not seen since the first quarter of 2016.



North Peninsula Office Market Report
1Q18
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North Peninsula Industrial Market Report
1Q18
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