South Peninsula Office Market Report
| Average NNN Asking Rent (Price/SF) | $5.76 |
| Availability Rate (%) | 10.2% |
| Net Absorption (SF) | -470,951 |
On the heels of three strong months to start 2020, the South Peninsula took a significant hit to gross absorption, mainly caused by continued uncertainty across all tenant sectors. Demand struggled to come back as tenants navigated new workplace strategies. Undoubtedly, tenants will be adopting more acceptance for employees to work from home and less density in the workplace; how the two will truly affect the demand in the marketplace is yet to be seen. Hesitation to make major commercial real estate decisions will likely continue through 2020, and most ongoing lease transactions at every level have paused to focus on business continuity and opting to wait for more certainty in the future. The development and distribution of a vaccine for COVID-19 will certainly help.
Download South Peninsula Office Market Report 2Q20South Peninsula R&D Market Report
| Average NNN Asking Rent (Price/SF) | $5.44 |
| Availability Rate (%) | 7.9% |
| Net Absorption (SF) | 443,804 |
The South Peninsula’s R&D market looks primed for a rebound in the final quarter of 2019, just as it was at this time last year. This positive outlook is based upon both the leases that are currently being negotiated and the demand touring actively in the marketplace. Should these requirements remain in this R&D market, the South Peninsula can expect significant positive absorption in the fourth quarter. Gross absorption only decreased by approximately 70,000 square feet in the third quarter, bringing year-to-date net absorption to negative 327,385 square feet.
Download South Peninsula R&D Market Report 1Q20