Here’s Cornish & Carey’s North Bay Commercial real estate market report for year-end 2010.
2010 was a year of consolidation. Leasing activity in Marin County was well below 5-year average levels during 2010. The latter half of the year saw an increase over very light activity in the first half of the year. Many landlords were reluctant to invest in major tenant improvements at current rent levels, but offered free and partial rents at the beginning of terms to compete for tenants. One month of free rent per year of lease term became the norm in 2010.
The outlook for 2011 is there will be continued stabilization of the market at current levels in the first part of the year, with a strengthening of the job market starting to impact the local office market in the latter half of 2011.