Address: 311 Turqoise Street, Milpitas, CA
Seller: Stanley Deck
Buyer: Lenthor Engineering
RBA SF: 55,414 total
Lot size: 3.56 Acres (155,073 SF)
Selling price: $4,308,438 ($77.75/SF)
The property was sold to an owner/user. The property had multiple upgrades including TPO Reflective Roof, air products nitrogen pipeline on-site, and multiple equipment pads.
Address: 201 Spear Street, San Francisco, CA
Seller: Cornerstone Real Estate Advisors, Inc.
Buyer: KBS Real Estate Investment Trust III
RBA SF: 246,563 total
Lot size: 0.87 Acres (37,897 SF)
Selling price: $121,000,000 ($490.75/SF)
Type: Class A Office
The property is approximately 80% occupied.
By Francys Vallecillo
More than 70 percent of global investors plan to expand their portfolio within the first six months of 2014, with investor confidence forecasted to reach high marks, according to a new report from Colliers International.
The 522 global investors surveyed for Colliers’ 2014 Global Investor Sentiment Survey demonstrated increased confidence in global markets for 2014, with investor focus expected to shift.
There will be an “increased [investment] volume across all property types as equity investment continues to spread to secondary markets in search of yield and loan capital continues to become more available,” Richard Putnam, managing director, Western Region, Colliers International Capital Markets Group, told WPC News.
The U.S. is the top investment destination among global investors, even as the country’s economy recovers from the recent government shutdown, Colliers reports.
Investors are also expected to target Western Europe, Brazil and gateway Asian cities, Mr. Putnam said. Investors in mature markets like the U.S., Europe and Canada tend to seek returns between five and 10 percent, but in Asia, investors are looking for returns of 20 percent or higher.
Read more of World Property Channel here.
Here’s an excerpt:
The San Francisco Peninsula industrial market in the third quarter of 2013 showed no significant changes from the previous quarter, with the notable exception of a huge decrease in net absorption. Absorption continues to stay positive for the year, but had a significant drop in the third quarter with smaller deals closing more frequently than larger ones. In total, there were fewer deals transacted this quarter than last, but touring activity has been picking up throughout the quarter and continues to show an upward swing.
Read entire report here: industrial-market-research-peninsula-2013-2q
Here’s an excerpt:
Steady rental rates and a large number of users in the market lead to strong activity in the third quarter for the Silicon Valley industrial and warehouse markets. Industrial vacancy dipped below 10%, which should lead to increased rental rates over the short term. New availabilities to the market are quickly being leased, with many tenants struggling to find quality space that fits their needs.
Read entire report: industrial-market-research-silicon-valley-2013-3q
Address: 555 Charcot Ave, San Jose, CA
SF Leased: 65,941
Pricing: $0.55 /psf NNN
Type: Industrial – Warehouse
Term: 64 months
Address: 90 East Tasman Drive, San Jose, CA
Seller: Ingber, Ingber, Griffin Trust
Buyer: Market Street Capital Investors
RBA SF: 96,154 total
Lot size: 4.02 Acres (175,111 SF)
Selling price: $17,000,000 ($176.80/SF)
Type: Industrial – Flex R&D
This was a net leased investment, currently leased to Palmer College of Chiropractic. They have 7 years remaining on their current lease. The property recently underwent $1M in renovations.
By Francys Vallecillo
Confidence in the U.S. office market is building, boosted by strong results in many cities.
During the third quarter, the nation’s office market recorded a rent growth of 1.4 percent, the highest quarterly jump of the recovery, annualizing at a rate of 5.6 percent, according to a new market report from Jones Lang LaSalle.
A separate report from JLL showed average office rents in Menlo Park’s Sand Hill Road reached $111 per square foot, the highest in the nation.
Absorption levels continued upward momentum, increasing for the 14th consecutive month and reaching 9.6 million square feet during the third quarter.
“This quarter, more than 87 percent of markets have posted positive absorption through October,” John Sikaitis, director of office research for the Americas, JLL said in the report. “We expect these gains to move higher into 2014 as more than half of the markets reported stronger tour activity this quarter.
Several of the markets that posted the strongest moves were laggards during the domestic recovery over the last two years: Atlanta, Chicago, and Florida. Even though technology-centric markets like Silicon Valley, San Francisco, Seattle-Bellevue and Austin and energy-rich markets like Houston, Denver and Dallas-Fort Worth still lead the recovery, confidence is spreading to other demographics.
“In recent quarters, as the economic recovery has gained momentum nationally, most other office markets have jumped into the fray of the market comeback, experiencing tightening market conditions and enhanced prospects for 2014 and 2015,” JLL states.
Leasing activity across all states reached 65.4 million square feet during the third quarter, jumping 5.9 percent from the previous quarter and 11.4 percent from last year.
As the market recovers, tenants are facing limited leverage for office space.
Read entire World Property Channel report here.
San Francisco Office has been red hot with rates continuing their upward climb. This ripple effect is starting to make its way down the Peninsula. Here’s an excerpt from the report:
The San Francisco office market continues to attract tenants from across a wide spectrum of industries around the globe. After a slow start, the San Francisco leasing market roared back in the third quarter of the year. This surge in leasing activity coincides with multiple Financial District office buildings that are currently on the block for sale. The technology sector remains the engine driving demand in the office market, but professional service firms are continuing to lease space throughout the city. With major tenants still in the market taking space, we expect high leasing activity to continue through the end of the year.
Read the entire report: office-market-research-san-francisco-2013-3q.