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South Peninsula Market Reports

South Peninsula Office Market Report

Average NNN Asking Rent (Price/SF)       $5.91
Availability Rate (%)        6.3%
Net Absorption (SF)
 133,122

The strong fourth-quarter growth that closed out an overall healthy 2018 office market continued into the first quarter of 2019. There is still some uncertainty in the global economic markets and a volatile political landscape, which raise concerns that the region is nearing the end of its growth cycle. However, given the robust leasing activity and a very strong IPO outlook for 2019, those concerns have been allayed somewhat-at least for the near term. The strength of the leasing market is represented by about 1.1 million square feet of leasing, slightly higher than the total for the previous quarter. Net absorption decreased slightly, although this can be attributed to quality product becoming available, which also led to an increase in average asking rent. This rent now boasts a record high for the South Peninsula.

South Peninsula R&D Market Report

Average NNN Asking Rent (Price/SF)        $5.49
Availability Rate (%)          7.9%
Net Absorption (SF)  -132,633

Demand remains strong in the South Peninsula R&D market, as transaction volume and absorption continued to rebound steadily from their sluggish start to 2018. However, the market was also off to a slow start for 2019, as gross absorption plunged almost 1.0 million square feet in the first quarter. This is not necessarily a negative indicator: There are significant transactions in motion, and there is deep demand in the market. Unfortunately, there is a lack of quality product. The 519,538-square-foot HPE Campus at 3000 Hanover Street in the Stanford Research Park is still available, but the lack of activity is the result of a high triple net rate that is generally atypical of R&D product. It is likely that most R&D tenants have been priced out of this submarket.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



South Peninsula Office Market Report
1Q19
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South Peninsula R&D Market Report
1Q19
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