Peninsula
North And Central San Mateo County
Industrial/Warehouse 3rd Quarter Update
By Mark Melbye and Joe Cammarata
This month’s write up will include detailed information on the Warehouse Submarket for the 3rd quarter in Central and Northern San Mateo County.
Warehouse vacancy rates have been in the 6% range throughout the San Mateo County market over the last few years. As of the end of the 2nd Quarter, San Mateo Northern County, which extends from Brisbane to Burlingame, had a 7.2% vacancy rate with an average asking rental rate of $.85 NNN per square foot. San Mateo Central County, which includes San Mateo and Foster City, had a 5.5% vacancy rate with an average asking rental rate of $1.31 per sq. ft.
Nearing the end of the 3rd Quarter, we have seen an increase in available space, both direct and sublease in both regions. In August, six new spaces came to market, three direct spaces and three sublease spaces. The new spaces range in size from 8,000 sq ft to 25,000 sq ft and the average asking rate for the new spaces is $.85 NNN.
Leasing activity was moderate for the quarter.
Notable Lease and Sublease Transactions over the last two quarters:
111 Kimball Way, SSF: 15,362 square feet of warehouse space for 3 years at $.82 NNN.
850 Mitten, Burlingame: 14,750 sq. ft. building Subleased for 7 years at $.98 Industrial Gross.
212 – 218 Ryan Way, SSF: 7,000 square feet leased for five years at $.75 NNN.
1625 – 1633 Adrian Road, Burlingame: Peter Pan BMW leased 42,000 sq.ft. Terms Undisclosed.
Warehouse sales in both regions have been steady and have continued to show a higher per square foot price than the previous quarter. Owner/user buyers have purchased the majority of the available product, while investors still conitue to show strong interest in investing in this region.
In addition, there have been several “off market” warehouse buildings sold over the last few months. One of the buildings sold was 1564 Rollins Road, located in Burlingame between the Millbrae exit and the Broadway exit. This property is approximately 20,000 square feet on 1 acre of land. The building has an 18’- 20’ clear height with multiple docks and multiple grade level doors. The property is 100% leased. The buyer’s intention is to keep the tenants in the property on a short term basis while improving the interior and exterior of the structure. The buyer intends to occupy the property for his own business, Triple Leaf Tea Inc. after completing the improvements. This property closed in May for over $200.00 per square foot.
As stated above, investors have shown continued interest in the North and Central San Mateo County. For example, RPW Exchange Co. purchased the property at 1101 Chess Dr. in Foster City for $7,750,000.00 or $245.10 per square foot which was a 7.34% cap rate and housed the company Argonaut Technologies. Also, an unidentified investor currently has the Airport Service Center tied up on Cowan Road in Burlingame under contract.
As we have outlined above, the Northern and Central San Mateo County warehouse leasing market has remained steady and the sales market continues to be strong.
For further information on warehouse/industrial space in the San Mateo or San Francisco County area, please contact GVA Kidder Mathews at 650-769-3500
Peninsula
North And Central San Mateo County
Industrial/Warehouse 3rd Quarter Update
By Mark Melbye and Joe CammarataThis month’s write up will include detailed information on the Warehouse Submarket for the 3rd quarter in Central and Northern San Mateo County.
Warehouse vacancy rates have been in the 6% range throughout the San Mateo County market over the last few years. As of the end of the 2nd Quarter, San Mateo Northern County, which extends from Brisbane to Burlingame, had a 7.2% vacancy rate with an average asking rental rate of $.85 NNN per square foot. San Mateo Central County, which includes San Mateo and Foster City, had a 5.5% vacancy rate with an average asking rental rate of $1.31 per sq. ft.
Nearing the end of the 3rd Quarter, we have seen an increase in available space, both direct and sublease in both regions. In August, six new spaces came to market, three direct spaces and three sublease spaces. The new spaces range in size from 8,000 sq ft to 25,000 sq ft and the average asking rate for the new spaces is $.85 NNN.
Leasing activity was moderate for the quarter.
Notable Lease and Sublease Transactions over the last two quarters:
111 Kimball Way, SSF: 15,362 square feet of warehouse space for 3 years at $.82 NNN.
850 Mitten, Burlingame: 14,750 sq. ft. building Subleased for 7 years at $.98 Industrial Gross.
212 – 218 Ryan Way, SSF: 7,000 square feet leased for five years at $.75 NNN.
1625 – 1633 Adrian Road, Burlingame: Peter Pan BMW leased 42,000 sq.ft. Terms Undisclosed.
Warehouse sales in both regions have been steady and have continued to show a higher per square foot price than the previous quarter. Owner/user buyers have purchased the majority of the available product, while investors still conitue to show strong interest in investing in this region.
In addition, there have been several “off market” warehouse buildings sold over the last few months. One of the buildings sold was 1564 Rollins Road, located in Burlingame between the Millbrae exit and the Broadway exit. This property is approximately 20,000 square feet on 1 acre of land. The building has an 18’- 20’ clear height with multiple docks and multiple grade level doors. The property is 100% leased. The buyer’s intention is to keep the tenants in the property on a short term basis while improving the interior and exterior of the structure. The buyer intends to occupy the property for his own business, Triple Leaf Tea Inc. after completing the improvements. This property closed in May for over $200.00 per square foot.
As stated above, investors have shown continued interest in the North and Central San Mateo County. For example, RPW Exchange Co. purchased the property at 1101 Chess Dr. in Foster City for $7,750,000.00 or $245.10 per square foot which was a 7.34% cap rate and housed the company Argonaut Technologies. Also, an unidentified investor currently has the Airport Service Center tied up on Cowan Road in Burlingame under contract. As we have outlined above, the Northern and Central San Mateo County warehouse leasing market has remained steady and the sales market continues to be strong.
For further information on warehouse/industrial space in the San Mateo or San Francisco County area, please contact GVA Kidder Mathews at 650-769-3500