By Meghan Hall
Peery Park is located northwest of Sunnyvale’s downtown and is one of the older areas of
According to Graymark Capital’s site, the building is 100 percent
The R&D building is located right across from Irvine Company’s future 1.3 million square foot Pathline Park project. Peery Park has a 1.8 percent R&D vacancy rate, with other tenants in the area including LinkedIn, Mercedes, Nokia, Volvo and Synopsis. According to Kidder Mathews’ 4th Quarter Silicon Valley R&D Real Estate Market Overview, the Silicon Valley R&D market ended the year on a strong note, with 430,000 square feet of absorption and nearly 6.2 million square feet of R&D leasing activity. Compared to the rest of Silicon Valley, Sunnyvale has one of the lower total vacancy rates for R&D space, at 5.1 percent. Newark and Cupertino have the lowest rates, at 1.40 percent and 1.10 percent, respectively.
Graymark Capital’s acquisition of the building will continue to build upon a busy fourth quarter of investment into Silicon Valley; sales volume reached over $1.2 billion during the fourth quarter of 2018, bringing the year’s total to $2.6 billion. Compared to 2017, dollar volume rose 24 percent on R&D Sales. Other notable purchases’ such as Alphabet Inc.-owned Google’s acquisition of Chesapeake Terrace for $160.3 million continue to show strong interest in the area, where experts like Kidder Mathews expect high investment demand to continue.
Graymark Capital declined The Registry’s request for comment.