MARKET TRENDS | SILICON VALLEY RETAIL 3RD QUARTER VACANCY | UNEMPLOYMENT | RENTAL RATE | CONSTRUCTION DELIVERIES 2019
TOP SALE TRANSACTIONS FOR 3Q 2019
Property Submarket Square Feet Sale Price Price/SF Buyer Seller Pruneyard Shopping Center Campbell 251,255 $212,500,000 $845.75 Regency Centers Ellis Partners Bo Town Downtown San Jose East 22,295 $15,000,000 $672.80 Navitas Capital Hua Family Milk Pail Market West Mountain View 3,072 $9,000,000 $2,929.69 Merlone Geier Management John Rasmussen 1145 S Bascom Ave San Jose Central 10,000 $5,600,000 $560.00 Glen-Loma Corporation Kelly-Moore Paint 5970 Mowry Ave Newark 11,395 $5,100,000 $447.56 D & C Lee Second LP Saleem Sadruddin
TOP LEASE TRANSACTIONS FOR 3Q 2019
Property Submarket Square Feet Date Landlord Tenant 1375 Blossom Hill Rd South San Jose 61,004 July 2019 Pan-Cal Corporation Outdoor Supply Hardware 196 N 3rd St Downtown San Jose East 44,049 September 2019 Nahas Company LLC N/A 2555 Charleston Rd West Mountain View 34,000 July 2019 The Russ Group Ace Hardware 6130-6186 Bollinger Rd San Jose Winchester 23,672 July 2019 Helen Owen N/A Westfield Oakridge South San Jose 23,500 July 2019 Unibail-Rodamco-Westfield Gameworks
TOP UNDER CONSTRUCTION
Property Address Submarket Square Feet Owner Delivery Date Sunnyvale Cityline AMC 150 E McKinley Ave Central Sunnyvale 110,000 Hunter Properties March 2020 Gateway Village 3700 El Camino Real Santa Clara 108,600 Essex Property Trust June 2021 Floor & Decor 1585 N McCarthy Blvd Milpitas 75,000 McCarthy Ranch November 2019 Stevens Creek Subaru 3209 Stevens Creek Blvd San Jose, Winchester 45,778 Oscar Bakhtiari January 2020 Miro Retail Podium 39 N 5th St Downtown San Jose East 39,074 Beijing Damei JV Bayview Development March 2021
Market Breakdown 3Q 2019 2Q 2019 3Q 2018 Annual % Change New Construction 10,860 22,480 49,070 -77.87% Under Construction 989,408 1,000,268 1,031,812 -4.11% Vacancy Rate 3.5% 3.6% 3.3% 6.06% Average Asking Rents (NNN) $33.84 $33.72 $32.76 3.30% Average Sales Price/SF $645.94 $507.78 $583.12 10.77% Cap Rates 4.30% 5.30% 3.90% 10.26% Net Absorption 79,121 (163,075) 7,883 N/A
3Q 2019 | SILICON VALLEY | RETAIL | KIDDER MATHEWS NEW RETAIL CONSTRUCTION & ABSORPTION AVERAGE ASKING RENT/SF & VACANCY RATE
1.5M $35 7%
1.2M $30 6%
900K $25 5% 600K $20 4% 300K $15 3% 0 $10 2% -300K
1% -600K $5
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
New Construction (SF) Absorption (SF) Asking Rent/Unit Vacancy Rate
SALE VOLUME & LEASE VOLUME AVERAGE SALES PRICE/SF & CAP RATES
5M $800 8.0%
$700 7.5% 4M $600 7.0%
3M $500 6.5%
$400 6.0% 2M $300 5.5%
$200 5.0% 1M $100 4.5%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Sold (SF) Leased (SF) Sale Price/SF Cap Rate
Kidder Mathews is the largest, independent commercial real estate firm on the West Coast, with 800 real estate professionals and staff in 22 offices in Washington, Oregon, California, Nevada, and Arizona. We offer a complete range of brokerage, appraisal, property management, consulting, project and construction management, and debt equity finance services for all property types.
The information in this report COMMERCIAL BROKERAGE was composed by the Kidder Mathews Research Group. ANNUAL NO. OF 20M SALES SF 420+ BROKERS JERRY HOLDNER Director of Research ANNUAL ANNUAL 949.557.5050 $9B TRANSACTION 40M LEASING SF [email protected] VOLUME
ERIC LUHRS VALUATION ADVISORY Regional President, Brokerage Northern California & Nevada APPRAISALS TOTAL NO. 408.970.9400 1,600+ ANNUALLY 39/24 APPRAISERS/MAI’S [email protected]
Designated Broker PROPERTY MANAGEMENT Mark Read | LIC No 00572743 MANAGEMENT KIDDER.COM 70M+ PORTFOLIO SF
This information supplied herein is from sources we deem reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT, OR OTHER PROFESSIONAL ADVISOR.
DATA SOURCE: COSTAR 3Q 2019 | SILICON VALLEY | RETAIL | KIDDER MATHEWS