Central San Mateo County Sees Strengthening Rent Growth
Source: costar.com | Re-Post MNM Partners 8/23/2018 –
After the San Francisco office market saw some of the strongest rent growth in the country in the first few years of the cycle, averaging around 14 percent annual growth from 2010 to 2015, rent growth began trailing the historical average in 2016 and has seen minimal growth in 2018.
The one part of the metro that has been bucking that trend, however, has been the central part of the county. While the metro is currently averaging around 1.5 percent year-over-year rent growth, these submarkets currently average around 5.6 percent year-over-year growth.
The submarkets in the Central San Mateo County cluster, containing Burlingame and San Mateo, currently lead the metro in annual rent growth, mostly due to strong performances in the first half of 2018. Rent growth in the first half of the year was around 3 percent in these submarkets, well above their 2017 growth of just 0.7 percent.