Asking Rates Reached Historic Heights on the Peninsula

All Markets Remain Strong Despite Gains in Vacancy Rates.

Redwood City, (October 23, 2018) – The third quarter market research and forecast report produced by Colliers International’s San Francisco Peninsula indicates a surge in demand and record-high average asking rates in office, research and development (R&D) and industrial sectors. According to the leading global real estate services firm, this quarter saw modest increases in vacancy rates, and although this typically indicates a drop in demand, stronger market indicators show the market has no signs of slowing down.

The San Mateo County market experienced substantial growth demonstrated by the large levels of gross absorption, a measure of all leasing activity in a given period, accompanied by the rising average asking rates. In total, the gross absorption reached ±3,059,555 square feet of commercial product, which is ±2,083,943 square feet more than last quarter and ±1,852,890 square feet more than the third quarter of 2017. “The high absorption reflected here is simply an impressive quarter of very strong leasing activity,” said Mike Cobb, Colliers International’s Senior Vice President.

While large tenants like Genentech and Facebook made significant deals on the San Francisco Peninsula, this number results largely from an extremely active three months with a total of 275 deals compared to the 110 deals recorded last quarter. The large amount of transactions combined with the high average asking rates point to a market in the heat of acceleration indicating no change in wind direction for the San Francisco Peninsula’s commercial real estate market. The jump in vacancy is merely the result of normal market fluctuation as available inventory is still fairly limited. Low vacancy and historically high average asking rates demonstrates a hot market with no signs of cooling down.

Download the full report here:
San Francisco Peninsula Q3 2018: http://www.colliersproperty.com/newsletters/rwc.all.news.Q3-18.pdf

About Colliers International Group Inc.
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice to accelerate the success of its clients. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers is ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

Colliers is led by an experienced leadership team with significant equity ownership and a proven record of delivering more than 20% annualized returns for shareholders, over more than 20 years.

West Coast Commercial Real Estate News