Development Reinvigorates the Peninsula Market
San Francisco Peninsula’s commercial real estate market bounced back in Q2 2021 with 2.9 million square feet of gross absorption, up 184.5 percent compared to Q2 2020. However, the bulk of this activity stemmed from new construction coming online. More than 2.0 million square feet of office and R&D space was delivered, 95.3 percent of which was immediately absorbed due to expansion commitments made prior to the pandemic. The overall market vacancy rate did not change from the previous quarter, standing at 7.7 percent, and remains 150 basis points above the same period last year.
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