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LEASING STEADY
Deal volume totaled over 2.6 million square feet (msf), as several significant leases were signed. Tenants have leased 5.8 msf in the four most recent quarters.
AVAILABILITY DECREASES
The region’s overall availability rate declined by 200 basis points to 15.8%, and has decreased by 130 basis points compared to mid-year 2017. Availability remains negligible in Menlo Park, Palo Alto and Sunnyvale/Cupertino with single-digit availability in these core locations.
RENTAL RATE PUSHER HIGHER
Regional overall asking rent rose by 4.0% to $50.94 ($4.25 monthly) during the second quarter. Class A rent increased by 1.7% to $52.51 ($4.38 monthly).
SALES DROP
Office property sales during the last six months (through May 2018) totaled $1.6 billion, a 33% decrease compared to the previous six-month total of $2.5 billion.
"Developers seemingly only have to conjure up a new project and one of the Valley's top employers magically appears to take it. Realistically, though, securing financing and approvals for new development remains challenging. Landing a tenant in this current market may be the least difficult part of the equation - at least for the time being."
John Brady, Vice Chairman