Comment on Latest place to benefit from tech boom: San Mateo County

Latest place to benefit from tech boom: San Mateo County

San Francisco and Santa Clara County are two of the hottest commercial real estate markets in the region, if not the nation. Last month, Google, headquartered in Mountain View, leased 1 million square feet of office space (reported price, $600 million) in Redwood City. Cloud storage company Box is taking a 334,000-square-foot office building going up on the former Malibu Grand Prix site in Redwood City as its new headquarters and subleasing its old headquarters in Los Altos. RingCentral, a cloud phone vendor, is moving into an 84,000-square-foot space in Belmont, and Rakuten, a fast-growing Japanese e-commerce company, just signed a lease for 57,000 square feet in the city of San Mateo. “There are others out in the market looking for space, between 12,000 and 1 million square feet,” said Bob Garner, executive managing director at commercial real estate broker Newmark Cornish & Carey in San Mateo. Ground is being broken next week on the first of five office buildings totaling up to 1.5 million square feet in a development dubbed Bay Meadows Station 4. When completed, on a date to be determined, the “urban village” will house up to 1,250 residential units, retail outlets, 18 public parks, a community garden and open space. Neither Thacher nor Garner, whose firm is the project’s leasing agent, would disclose the names of potentially interested tenants, but said there is already quite a bit of “activity.” Commercial real estate is seeing “dramatic rent increases and a wave of speculative development not seen in years,” according to Colliers International’s third quarter real estate report. “Speculative development” means proceeding with a project on unused land, assuming its value will increase. Wong wanted to relocate Reddit’s headquarters from San Francisco’s South of Market district to a new Class A office building in Daly City ($45 per square feet), right off Interstate 280, and a couple of blocks from BART.

 

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