North Peninsula Office Market
Market-wide vacancy dropped to 18.3% this quarter, down from 19.0% in the previous quarter. Sublease vacancy also decreased, reaching 5.5% compared to 6.1% last quarter. Market-wide availability recorded a slight decrease to 20.4%, from 21.0% in the prior quarter. Sublease availability followed the trend, falling to 6.0%, down from 6.6%. Leasing activity has rebounded strongly, up 68.0% from a year ago, after reaching a post-pandemic low in 2023. Overall, the North Peninsula leasing market remains active, though average deal sizes continue to lag behind pre-pandemic levels—a trend expected to persist in the near term. Leasing concessions remain elevated, signaling that tenants still have the upper hand as landlords prioritize occupancy over asking rate increases.
Download North Peninsula Office Market 3Q24North Peninsula Industrial Market
Market-wide R&D availability increased to 26.7% this quarter, up from 26.4% in the previous quarter. R&D vacancy also saw a rise, reaching 23.4%, up from 21.0%. On the North Peninsula, the industrial market availability rate edged up in the third quarter of 2024 to 7.40%, compared to 7.37% in the prior quarter. Market-wide industrial vacancy increased to 5.8%, up from 5.2%. The region’s R&D pipeline stands at 4.6 million SF of under-construction product, with 10.4% of that already preleased. The industrial construction pipeline remains inactive.