2Q Peninsula Report

| July 20, 2009 | 0 Comments

We’ve just released our Quarterly market report for the Peninsula.  I have again authored the write-up on the office market, and as a result have spent a lot of time digesting the data. 

 I think that its universally accepted that the eventual market recovery will be a slog.   No arguement here.  I plan to monitor the market looking for, as they say, ‘green shoots’.

 A few things I’ll be keeping an eye on:

 – Gross absorption.  Measure of the entire game of musical chairs that is the commercial real estate market.  We’ve had two quarters where overall leasing action has been simply anemic.  My best guess is that we’ll see a decent uptick in the second half of the year.

 -Smaller deals.   Colliers actually recorded a small bump in the number of <10K sf leases in San Mateo County, and my sense is that the same is true for the South Peninsula (PA-MV).   A continuation of this trend would be encouraging, and has been a harbinger of positive movement in past cycles

 – Sublease square footage as a percentage of all available space.  An increase in this ratio is the real estate equivalent of ‘Red Skies at Morning’.  Not bad now, hopefully will stay that way.

You can download the report HERE

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