Market Remains Stable as Activity Continues to Reach Elevated Levels
San Francisco Peninsula’s commercial real estate market continued its ascent to record levels in the third quarter of 2021, measuring over 2.7 million square feet in gross absorption, up 33.2 percent year-over-year. There was an uptick in occupancy this quarter in San Mateo County, measuring 563,000 square feet in positive net absorption, a 136.7 percent increase year-over-year and a 41.0 percent increase quarter-over-quarter. Construction continues to play a prominent part in the success of the Peninsula, with nearly 5.0 million square feet under construction, 305,000 square feet of which is set to complete by the end of this year. The overall vacancy improved marginally quarter-over-quarter, down 60 basis points to 7.1 percent in Q3 2021 but remains significantly above Q3 2020, when vacancy stood at 4.0 percent.
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