Laserfiche WebLink
Appraisal: APN 053-182-030, S.E. Corner of Maple & Lathrop Streets, Redwood City, Calif.Page 15 <br />2025CNA112 <br />D. Office and R&D Market Conditions <br />The commercial brokerage firm Cushman & Wakefield reported in their San <br />Mateo County Office & R&D Q1 2025 Marketbeat:The San Mateo County <br />combined office and R&D vacancy rate jumped 110 basis points (bps) in the first <br />quarter to 22.4%. The continuing trend of record high vacancy was largely due to <br />four large blocks of space over 50,000 square-feet (sf). The largest sublease block <br />is from Snowflake as they added 210,000 sf and will relocate from San Mateo to <br />Menlo Park to grow into nearly 800,000 sf. The largest direct block to hit the <br />market was 110,000 sf at 101 Lincoln Center Dr in Foster City, formerly <br />occupied by Gilead Sciences. R&D vacancy which accounts for only 3.1% of total <br />vacancy, decreased 30 bps from the previous quarter to 278,364 sf with much of <br />that being direct space in Southern San Mateo County. <br />The San Mateo County overall asking rent dropped to $5.78 per square foot (psf) <br />on a monthly, full-service basis, from $5.94 psf the previous quarter and $0.56 <br />below the peak $6.34 psf in the first quarter of 2023. Menlo Park retained the top <br />spot at $7.71 psf due to premium direct class A rents in the Sand Hill Road <br />submarket. Class A complexes continued to command elevated direct rents in the <br />market at $6.39 psf with the Menlo Park Class A direct asking rent reigning <br />supreme at $9.32 psf, though that has been trending down from its peak of $11.60 <br />psf in the fourth quarter of 2023. <br />Two projects in Redwood City totaling 537,000 sf are currently under <br />construction, with 100% of the total square footage available; both projects are <br />expected to deliver in the second half of 2025. The latest major deliveries last <br />year were 220 Park Road, located in the heart of downtown Burlingame, partially <br />leased to Skyknight Capital, and Burlingame Bay Center fully leased to Meta. <br />Leasing activity had a slow start to the year at 398,776 sf with Central San Mateo <br />County capturing 59% of transactions. New leasing made up 54% of all deals, led <br />by the City of Burlingame leasing 26,522 sf at 1440 Chapin Ave in Burlingame. <br />Net absorption remained in the red at negative 463,878 sf. The bulk of negative <br />absorption was in Foster City, San Mateo and Menlo Park recording figures of - <br />182,553 sf, -181,307 sf and -101,233 sf respectively. The bright spot was North <br />San Mateo County at positive 63,485 sf, led by South San Francisco and Brisbane <br />with 49,635 sf and 21,424 sf, respectively. <br />8.K. - Page 62 of 105 <br />312