Your Commercial Real Estate Source in the San Francisco Bay Area
Numbers are crunched, the results are in and it is all good news. The first quarter seems to be a precursor to what we’ve seen so far in the beginning of the second quarter as well. Deals are beginning to happen at a feverish pace and many of the smaller products that languished on the market for a long time are being snatched up quickly. With the anecdotal evidence we’ve received so far, this could be the best summer of activity that we have seen in a long time. I suspect that rental concessions will all but dry up and we will begin to see rates increase across the board. We believe a seller’s/landlord market is around the corner which would be a considerable shift from the past 3 year. Here’s an excerpt from the report:
The San Francisco Peninsula industrial market finished the first quarter with positive absorption of 454,671 square feet, returning the market to positive absorption from fourth quarter 2012’s slight negative absorption. The signs are pointing to a strong industrial market overall in 2013. This strong growth should continue throughout the year due to continuing sector optimism and stability in the Peninsula market. The year started off slow with only 13 fewer deals completed than the previous quarter, showing stable activity. Because of this, the Peninsula will remain a popular market for foreign companies to locate, and will continue to be popular for investors and owner/users, which will drive more growth.
To read the entire report click here: industrial-market-research-peninsula-2013-1q