|
<br />CB RICHARD ElLIS CONSULTING
<br />Sedway Group
<br />
<br />$45
<br />CBRE
<br />
<br />CB RICHARD ELLIS
<br />
<br />APPENDIX B: OFFICE MARKET FINDINGS
<br />
<br />SAN FRANCISCO PENINSULA/REDWOOD CITY OFFICE MARKET OVERVIEW
<br />
<br />As of September 2004, the San Francisco Peninsula (SFP) office market] had 49.5 million square
<br />feet of space and an overall vacancy rate of 20.1 percent.2 The SFP's office vacancy rate has
<br />averaged a much lower 10.4 percent over the eight years from 1996 to 2003.
<br />
<br />The Peninsula's office market divides into three broad submarkets: North County, Central County,
<br />and South County. Approximately 40 percent of the total inventory is comprised of Class A space;
<br />the majority of the Peninsula's office market consists of low-and-mid-rise space. The Excite@Home
<br />campus is a 360,500-square-foot complex consisting of four, three-story Class A buildings located
<br />in Redwood City, in the Central County region of the SFP.
<br />
<br />Redwood City is the southernmost city within the Central County submarkets; also included are San
<br />Carlos, Belmont, Foster City and San Mateo. Office tenants likely to consider the Excite@Home
<br />campus, typcially in the 75,000 square-foot+ size range, are generally willing to extend their search
<br />for space as far north as Burlingame or Millbrae and as far south as Mountain Yiew. A Central
<br />County location offers proximity to skilled labor in both San Francisco and Silicon Valley, to the
<br />concentration of venture capital companies in Palo Alto and Menlo Park, and to Stanford University.
<br />
<br />Redwood City itself contains 10.6 million square feet of office space, or 22 percent of total SFP
<br />inventory (including Redwood Shores). It is the Peninsula's largest office submarket and has
<br />historically captured more than its pro rata share of both new supply and demand, with 37 percent
<br />of total market completions and 43 percent of SFP net absorption, respectively, since 1996. As of the
<br />third quarter of 2004, Redwood City's vacancy rate was 29 percent, considerably higher than its
<br />historical average of 15 percent over the period from 1996 to 2003.
<br />
<br />There are several concentrations of office space in Redwood City, including downtown Redwood
<br />City, to the west of U.S. Highway 101, and Mid-Point Technology Park, also west of U.S. Highway
<br />101 and south of downtown along Broadway Avenue. To the east of U.S. Highway 101, there are
<br />concentrations of newer office space, including Pacific Shores, east of Woodside Road, and
<br />Redwood Shores, north of the San Carlos airport.
<br />
<br />Similar to the rest of the SFP and to Silicon Valley, Redwood City is home to a high percentage of
<br />high technology-related tenants. Redwood City also has a significant number of government tenants,
<br />a fact that is attributable to its position as the government seat of San Mateo County. The city's
<br />largest employers include Oracle Corporation, San Mateo County, Kaiser Permanente, Electronic
<br />Arts, and Sequoia Hospital.
<br />
<br />1 Includes all of San Mateo County (Daly City, Brisbane, South San Francisco, San Bruno, Millbrae,
<br />Burlingame, San Mateo, Foster City, Belmont, San Carlos, Redwood City, and Menlo Park), plus Palo Alto in
<br />Santa Clara County.
<br />2 All office market data from Costar unless otherwise indicated. Vacancy rates are inclusive of sublease space,
<br />but not shadow space (e.g., space controlled by owner users or leased tenants but not occupied).
<br />
|