According to Newmark Cornish & Carey, leasing activity in the fourth quarter was slow and is reflected in quarterly net absorption under 10,000 square feet. Class A asking rental rates showed slight increases on the previous quarter, while Class B rents increased dramatically over the year.
Vacancy: Marin County Class B space was a hot commodity in 2014 as vacancy dropped below 10% and rental rates shot up 16% from the fourth quarter of 2013. With the San Francisco market continuing to tighten, tenants are beginning to look for cheaper rents with similar location benefits in Marin County.
Leasing activity and absorption: In 2014 the total absorption for Marin County was 170,466 square feet. Activity in the first two weeks of 2015 seems to indicate that the market will continue to tighten in 2015.
Rental rates and concessions: Despite large blocks of high rent space becoming leased or owner-occupied, full service asking rental rates for Marin County experienced a 2.6% increase over the last 12 months.
Outlook: The past year should instill confidence in the Marin County office market. Vacancy has decreased as rental rates continue to trend upward. Investors from the Bay Area and out of state have been actively buying properties in all submarkets of Marin County. As Marin becomes a transit oriented county with the implementation of the SMART train in 2016, a major concern for businesses in the past will finally be addressed.
To see the full report click: Newmark Cornish & Carey: Marin County 4th Quarter 2014