South Peninsula Office Market Report
|Average NNN Asking Rent (Price/SF)||$6.37|
|Availability Rate (%)||13.2%|
|Net Absorption (SF)||47,738|
The South Peninsula office market achieved net positive leasing absorption for only the second time in the last 11 quarters. Overall leasing activity showed a slight drop from a gross absorption perspective. The drop is likely due to the rise of uncertainty caused by the rise of a new COVID variant. However, vacancy rates continued to decrease, a trend that held steady through every quarter throughout the year. With now close to 65% of Americans fully vaccinated, almost 68% of the California population fully vaccinated, and 85% receiving at least one dose, companies are increasingly setting expectations towards an imminent return to office; case in point, Google’s purchase of an additional 4.6 acres near its headquarters in Mountain View, with plans to build an additional 3.0 million square feet of office in a mixed-use development.
Download South Peninsula Office Market Report 4Q21
South Peninsula R&D Market Report
|Average NNN Asking Rent (Price/SF)||$5.06|
|Availability Rate (%)||11.1%|
|Net Absorption (SF)||85,939|
In the third quarter of 2021, the South Peninsula boasted over 1.1 million square feet of gross absorption for only the third time in the last 12 quarters. With approximately 86,000 square feet of net absorption, this is the second consecutive quarter of positive net absorption. Building on the momentum of the second quarter, the South Peninsula continues to rival the robust leasing activity seen on the North Peninsula, bolstered by strong demand for new construction deliveries in South San Francisco. Additionally, demand on the South Peninsula remains strong due in large part to healthy tenant diversity. Tech, life science and automotive tenants are seeking over 2.0 million square feet of R&D space in the South Peninsula.