The San Francisco Peninsula continues to demonstrate its desirability with vacancy and average asking rents holding steady. San Mateo County’s job market continues to grow and remains an attractive location for companies to relocate or expand into demonstrated by Facebook’s rapid expansion in Menlo Park. With the lowest unemployment rate in the state and a thriving economy, San Mateo County is predicted to continue its growth into the second half of 2018.
Available space across all submarkets within San Mateo County continues to be scarce and desirable. This quarter, average asking rent for office space dropped marginally from $5.18 to $5.14 per square foot, per month and the vacancy rate decreased from 6.86 to 6.39 percent. San Mateo County’s research and development (R&D) sector also saw a dip in average asking rent from $3.79 to $3.73, while the vacancy rate climbed 25 basis points to 2.05 percent. The industrial market saw small changes with an average asking rent of $1.48, increasing by 0.60 percent from last quarter and a growth in vacancy rate of three basis points, closing at 1.53 percent. Overall, the commercial real estate market on the San Francisco Peninsula demonstrates its stability through minor changes to rent and vacancy rates.
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