Monthly update on the Peninsula and some key Submarkets

| November 6, 2012 | 0 Comments

I’ve just posted our latest snapshots for downtown Palo Alto, Redwood City and San Mateo to Opinion of Value’s Market Information page. While downtown Palo Alto registered what I consider an inconsequential bump in vacancy, these downtown cores have remained pretty stable over the course of the year.

We’ve also just released our monthly snapshot for the San Mateo County Office market (our quarterly market reports include the entire Peninsula). October marked the 5th consecutive month of increased Office vacancy in San Mateo County. The current rate of 14.5% represents a pretty substantial bump in a fairly short time frame– as recently as June we reported a 12.5% rate.

I don’t want to overstate this trend– while there is at least modest negative net absorption in almost every submarket, much of the new vacancy is concentrated in a few large blocks. Year to date, though, there has been a real drop off in leasing activity and, in particular, larger transactions. Rumors of some bigger deals in the immediate pipeline may give the 2012 market a 9th inning rally, but for the moment I expect the year to finish as a tepid one, especially in comparison to 2011.

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