Asset Services Insights - Fall 2016

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area’s largest inventory of both power
and regional centers, which are defined
by properties of at least 300,000 sf,
along with lifestyle centers.
SILICON VALLEY SNAPSHOT: In 2Q,
shopping center vacancy was 5.5%. Much
of the 2.1 msf of space available, out of
37.3 msf, was in Class B or C projects.
Average asking rent in 2Q was $29.04
psf on triple net basis. We are tracking
651,000 sf of retail under construction in
Silicon Valley, the largest project being
Almaden Ranch, a 350,000-sf shopping
center development in south San Jose,
anchored by Bass Pro Shops.
“The last six years have generated
remarkable growth in the Bay Area and
throughout Northern California. Tech
companies, historically concentrated
in Silicon Valley, are now the primary
drivers of growth in every submarket
and certainly in San Francisco. While this
growth has created stresses and strains,
it has also generated unprecedented
employment and income gains,” said Mike
Kamm, Market Leader, Northwest Region.
SANDRA BOYLE, CPM, LEED AP
Senior Managing Director
Northern California City Lead, Asset Services
“Unlike past tech booms, this one is different
in that tech can no longer be narrowly defined.
Rather it has become embedded into virtually
all industries and segments of society, and as a
result, all of these industries want to have some
sort of presence in the Bay Area today and into
the future,” said Mike.
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