South Peninsula Office Market Report
| Average NNN Asking Rent (Price/SF) | $6.04 |
| Availability Rate (%) | 11.2% |
| Net Absorption (SF) | -562,216 |
A myriad of factors continue to stack against the South Peninsula leasing market: the 2020 presidential election around the corner; no approved vaccine or therapeutics for COVID-19; continued uncertainty and increases in supply for the fourth straight quarter.
Absorption continues a downward trend; additional vacancy hits the market, yet asking rental rates remain flat. Landlords continue the fight, resisting the downward pressure on asking rates and battling to hold values on assets. The consensus remains that, as the market continues to soften in the near term, movement on asking rents will trend downward.
Download South Peninsula Office Market Report 3Q20South Peninsula R&D Market Report
| Average NNN Asking Rent (Price/SF) | $5.36 |
| Availability Rate (%) | 9.5% |
| Net Absorption (SF) | -335,883 |
Look for a rebound for the remainder of 2020 in the R&D sector on the South Peninsula. Specifically, the Stanford Research Park, which is accounting for 34.0% of the total availability on the South Peninsula in the second quarter. Look to the life science sector for some positive signs that might allow the region to weather the storm of COVID-19. With certain significant transactions in progress and demand making a comeback, life science is a bright spot. The hope is that large requirements that have pressed the pause button, waiting for more certainty, will land significant square footage on the South Peninsula by late 2020.
Download South Peninsula R&D Market Report 2Q20