Monthly update on some key submarkets

| December 8, 2011 | 1 Comment

Our research team has just released updates on a few key Peninsula submarkets. These reports are available via the links below.

I’ve commented previously on the trends in Downtown Palo Alto  and how I find declining value in tracking the short term changes there.   Really nothing surprising or new in our latest report.

I have long assumed that Downtown Redwood City would eventually benefit from the  phenomenon seen in other downtown cores in the region.  I don’t think that there has been a vacancy rate as low as its current 5.4% there, well, ever (maybe in 2000, but nobody was tracking this submarket back then).   Access to rail and other amenities fit the mood of the market today, probably for the long haul.  The rapid progress made by the city’s Redevelopment Agency on the disposition of a couple of key downtown parcels bode well for the future of this market.  No one that follows our industry long-term would expect low vacancies to be a permanent feature, but I expect downtown Redwood City to compare very favorably to the more established top flight office submarkets on the Peninsula going forward.

Conditions on Sand Hill Road remain interesting to me.  The most expensive address in the United States has not benefited consequentially from the market comeback this year.  Vacancies remain pretty high (below broad averages but not by much) and rents are flat.  Maybe a market in decline, but maybe any market looks to be standing still when compared to what’s happened in downtown Palo Alto this year.

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  1. Monthly update on key submarkets | Opinion of Value | February 8, 2012

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