North Peninsula Office Market
After positive absorption in the previous quarter, the region recorded negative absorption of 153,600 SF in the fourth quarter of 2024, primarily due to 582,000 SF from three Pacific Shores Center buildings in Redwood City hitting the market. Excluding these availabilities, the quarter would have posted 428,000 SF of positive absorption. Leasing activity rebounded strongly, increasing 67.0% quarter-over-quarter and 129.0% year-over-year. Market-wide vacancy rose slightly to 18.5%, up from 18.3% in the previous quarter, while sublease vacancy declined to 3.8% from 5.5%. Overall availability edged up to 21.1%, compared to 20.4% last quarter, while sublease availability fell to 4.2% from 6.0%.
Download North Peninsula Office Market 4Q24North Peninsula Industrial Market
Market-wide R&D availability increased to 27.5% this quarter, up from 26.7% in the previous quarter. R&D vacancy also rose, reaching 25.3%, compared to 23.4%. On the North Peninsula, the industrial market availability rate edged up in the fourth quarter of 2024 to 7.5%, compared to 7.4% in the prior quarter. Market-wide industrial vacancy declined to 5.7%, down from 5.8%. The fourth quarter marked the first quarter since the end of 2023 that the vacancy rate decreased quarter-over-quarter. The region’s R&D pipeline includes 3.85 million SF of under-construction product, with 16.0% already preleased. The industrial construction pipeline remains inactive.