South Peninsula Real Estate Market Reports

South Peninsula Office Market Report

The South Peninsula experienced a remarkable quarter in total leasing, achieving 2,177,072 square feet, making it the strongest quarter in the recorded history of the South Peninsula market. The South Peninsula market demonstrates notable recovery, recording positive net absorption of 622,678 square feet in 2024. This represents a substantial improvement from 2023, when the market experienced negative net absorption of 3.1 million square feet across all four quarters. Free rent, TI’s, and mixtures of concessions are important tools to be able to close transactions given the current market conditions. In addition, as companies look for ways to bring employees back to the office, amenities including flexible workspaces, additional conference rooms, and up-to-date infrastructure also play a pivotal role. ​

South Peninsula R&D Market Report

The South Peninsula market recorded 666,760 square feet of gross absorption in the fourth quarter of 2024, marking the third consecutive quarter to exceed the five-year leasing average. Also recording a positive net absorption of 230,248 SF across the South Peninsula market. All 5 of the largest R&D transactions were from AI or Life Science companies, highlighting the continued dominance of these sectors in the market. The top 10 largest transactions were direct leases, reflecting a trend away from subleases due to diminishing space availability in the sublease market.