Pandemic Reverses Absorption Trends
As deal velocity slowed in Q2 2020, San Francisco Peninsula's commercial real estate market saw occupancy losses across all tracked property types, resulting in a 1.1-million-square-foot swing of negative net absorption. The overall vacancy rate for all tracked property types rose for the third consecutive quarter, standing at 6.2 percent midway through 2020.
The COVID-19 pandemic continued to bring about uncertainty for occupiers and landlords alike, and many commercial real estate decisions were put on hold as a result. Remote working has become a norm in the region, and as a result, the market has seen an expansion of sublease space as occupiers reassess their workspace needs. Between office, R&D and industrial product there is more than 2.2 million square feet of available sublease space in San Mateo County, an increase of 5.9 percent from Q1 2020.
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