Downtown Palo Alto Office Market Snapshot

| August 5, 2011 | 1 Comment

Really, its almost to the point where its getting silly to even track the downtown Palo Alto office market.   Our current research report on this key market can be downloaded HERE.

A few footnotes, and why its getting harder to pay too much attention:

VACANCY VS AVAILABILITY RATE:  Vacancy is a measure of space that is actually physically unoccupied, while Availability will include space that is occupied but on the market for lease.  In a super tight market with accelerated rent growth, ‘Vacancy’ becomes less and less meaningful as available spaces come to market earlier and earlier.

ABSORPTION:  Measuring the volume of leasing activity.  No space means nothing to absorb, so this generally useful measure of a market, isn’t.

AVERAGE ASKING RENTS:  When there is only 120,000 sf available in a market that you are measuring, this becomes more a barometer of what Class of building isn’t getting leased as quickly.  So, the Avg Asking Rate in downtown Palo Alto goes down a little this month BECAUSE the market is so hot…

As an alternative to Downtown Palo Alto, we have a few office suites coming available at amenity-heavy Town and Country Village, which has become a very sought-after location for start-ups.  Drop me a line for more information

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  1. Monthly update on some key submarkets | Opinion of Value | December 11, 2011

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