By Meghan Hall
While the Silicon Valley commercial real estate market saw few large real estate moves during the third quarter, smaller transactions continue to move the sector along. In a transaction that closed just recently, North San Jose’s Concourse Tech Park has traded for $13.5 million. The property was purchased by Overton Moore Properties from Concourse Larimar LLC, affiliated with Tiffany Gin and Stanton Lowe of San Francisco.
Records indicate that Gin and Lowe originally acquired the asset in January of 2016 for $14.65 million. The asset is located at 1953-1965 Concourse Drive. Built in 1984, the property totals about 110,148 square feet and sits on over six acres. Data from CommercialCafe indicates that currently, there are five suites open for lease within the property. A mix of industrial, flex, R&D and office, the vacancies total 86,186 square feet.
Situated between Interstates 880 and 680, the property the surrounding neighborhood is commercial in nature, with companies like Gentec Manufacturing, GCT Semiconductors, Blach Construction and BD Biosciences within the immediate vicinity.
The third quarter was another slow one for Silicon Valley, a market which has become used to sizeable transactions and even jaw-dropping deals. Only a few notable deals took place, the largest of which was the sale of 4300-4600 Stevens Creek Boulevard in San Jose for $54.4 million, or about $326 per square foot. Fortune Realty acquired 3803 South Bascom Avenue in Campbell for $16.3 million, or about $505 per square foot.
Net absorption has continued to decline into the third quarter, ending at a negative 1.015 million square feet, according to a recent report released by brokerage firm Newmark Knight Frank. Combined with new space coming to market, overall vacancy rose 1.8 percentage points to 10.86 percent. However, because vacancy rates have remained relatively stable, so have office rents—a potential silver lining. At $4.65 per square foot, rents are still among some of the highest Silicon Valley has ever recorded, an indication of the market’s strength heading into the end of the year.