January 31, 2012 Leave a comment
Our quarterly report is out and good news continues to dominate the landscape here on the Peninsula. Overall absorption is increasing and rents are slowly beginning to tick up although at a snail’s pace. There are still some good deals out there because many landlords are looking to increase occupancy to compensate for the lack of rents in the past few years. That being said, we are starting to see landlords offer less in concessions, whether it be less free rent or tenant improvements and that is typically the first thing to go in a positive market. We will be updating the national picture soon as well as some office market updates locally, so be on the lookout for those. Here’s an excerpt from the report:
The San Mateo County industrial market concluded the fourth quarter of the year with a substantial increase of absorption totaling 205,177 square feet. As net absorption has risen by approximately 220,000 square feet following the conclusion of the third quarter, signs that market stability and industrial lease interest on the Peninsula are evident and ongoing. After consecutive negative absorption resulting in 2009 and 2010, the second half of 2011 has shown signs of modest market stability in the region along with continuing sector optimism. The fourth quarter finished with a total availability rate of 12.3%, which is a slight decrease from the previous quarter, finishing off at 12.6%. It is expected that as 2012 begins to develop, the marketplace will see users slowly move back into the area and take advantage of favorable opportunities in lease acquisitions.
Read the entire Q4 Market Report: industrial-market-research-peninsula-2011-4q