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Market Fundamentals
Improve Across All Office Classes
The North I-680 Office leasing market improved across all class segments during the first
quarter 2014. Class A vacancy decreased 40 basis points to 15.0 percent, Class B vacancy fell
130 basis points to 13.8 percent and Class C vacancy decreased 20 basis points to 21.4 percent.
These changes combined to result in total vacancy falling 60 basis points to 15.6 percent. The
market as a whole absorbed 117,436 square feet.
MARKET INDICATORS
Q1
PROJECTED
Q2
VACANCY RATE
NET ABSORPTION
CONSTRUCTION
RENTAL RATE
The Walnut Creek Downtown submarket absorbed space in the first quarter. Class A vacancy
decreased 10 basis points to 14.2 percent. Class A registered 3,482 square feet of net absorption
during the quarter. Class B registered 15,163 square feet of net absorption as vacancy fell 100 basis
points to 12.3 percent. At 1850 Mt. Diablo Boulevard, Legacy Risk & Insurance Services leased 9,620
square feet on the fourth floor. Rudolph & Sletten took 3,320 square feet at 800 S Broadway. At 1801
Oakland Boulevard, Proforma Partners leased 2,760 square feet on the second floor.
The Walnut Creek Pleasant Hill BART Class A submarket registered a 230 basis point decrease
in vacancy. The submarket tracked 41,011 square feet of net absorption. Vacancy now stands at
11.5 percent returning to a level seen one year ago. The most significant lease transaction was
Del Monte Foods 26,835 square foot, sixth floor lease at PMI Plaza.
$2.20
18%
$2.10
16%
$2.00
14%
$1.90
12%
$1.80
10%
2Q12
3Q12
4Q12
1Q13
Vacancy Rate
VACANCY RATE
www.colliers.com/walnutcreek
2Q13
3Q13
Asking Rents
4Q13
1Q14
$1.70
SUBMARKET MAP
1. Walnut Creek / Pleasant Hill
BART Station
2. Walnut Creek Downtown
3. Shadelands
4. Pleasant Hill
5. Lamorinda
6. Martinez
7. Concord
8. Alamo / Danville
SIGNIFICANT TRANSACTIONS
SALES ACTIVITY
PROPERTY NAME/ADDRESS
SALES DATE
SIZE SF
BUYER
CLASS
Mar-14
338,989
Highridge Partners
Feb-14
74,599
Rassier Properties
Feb-14
64,266
Prosper Holdings
Jan-14
53,832
Steve Kafka
2055 N Broadway
Mar-14
11,818
Mark O'Brien
Jan-14
3,524
Hall Equities
PROPERTY NAME/ADDRESS
LEASE DATE
SIZE SF
TENANT
CLASS
PMI Plaza
Feb-14
26,835
Concord Gateway II
Mar-14
10,787
Gateway Centre
Mar-14
9,620
Concord Gateway I
Feb-14
7,457
Feb-14
7,051
Mar-14
3,872
Equifax
Feb-14
3,848
Entegris Inc
800 S Broadway
Feb-14
3,320
LEASING ACTIVITY
P. 2
| COLLIERS INTERNATIONAL
TYPE
BLDGS
Absorption
TOTAL
DIRECT
DIRECT
SUBLEASE
SUBLEASE
TOTAL
INVENTORY
VACANCY
VACANCY
VACANT
VACANCY
VACANT
SF
SF
RATE
SF
RATE
SF
VACANCY
VACANCY
RATE
RATE
CURRENT
PREVIOUS
QUARTER
QUARTER
Construction
Rents
NET
NET
COMPLETED
UNDER
ABSORPTION
ABSORPTION
CURRENT
CONSTRUCT.
WEIGHTED
ASKING
CURRENT SF
YTD SF
QTR SF
SF
RENTAL RATE
WALNUT CREEK DT
A
20
2,745,998
321,628
11.7%
68,539
2.5%
390,167
14.2%
14.3%
3,482
3,482
$2.78
54
1,521,893
186,677
12.3%
867
0.1%
187,544
12.3%
13.3%
15,163
15,163
$2.20
22
487,569
37,513
7.7%
1,268
0.3%
38,781
8.0%
8.2%
1,158
1,158
$1.94
Total
96
4,755,460
545,818
11.5%
70,674
1.5%
616,492
13.0%
13.4%
19,803
19,803
$2.55
10
1,623,999
187,706
11.6%
0.0%
187,706
11.6%
14.4%
45,649
45,649
$2.91
164,226
13,452
8.2%
4,952
3.0%
18,404
11.2%
8.4%
(4,638)
(4,638)
$2.07
Total
14
1,788,225
201,158
11.2%
4,952
0.3%
206,110
11.5%
13.8%
41,011
41,011
$2.83
17
3,901,864
551,474
14.1%
80,090
2.1%
631,564
16.2%
16.0%
(7,579)
(7,579)
$1.89
36
1,028,347
172,750
16.8%
0.0%
172,750
16.8%
18.7%
19,215
19,215
$1.65
CONCORD
36
988,165
275,132
27.8%
0.0%
275,132
27.8%
28.2%
3,299
3,299
$1.17
Total
89
5,918,376
999,356
16.9%
80,090
1.4%
1,079,446
18.2%
18.5%
14,935
14,935
$1.67
188,131
64,241
34.1%
0.0%
64,241
34.1%
31.8%
(4,485)
(4,485)
$2.25
16
752,263
50,335
6.7%
0.0%
50,335
6.7%
6.7%
(113)
(113)
$1.84
14
240,671
13,266
5.5%
0.0%
13,266
5.5%
8.5%
7,104
7,104
$1.75
Total
32
1,181,065
127,842
10.8%
0.0%
127,842
10.8%
11.0%
2,506
2,506
$1.84
$1.85
PLEASANT HILL
A
SHADELANDS
A
174,807
67,567
38.7%
0.0%
67,567
38.7%
36.0%
(4,604)
(4,604)
30
1,327,320
318,598
24.0%
18,400
1.4%
336,998
25.4%
25.6%
2,203
2,203
$1.79
16
423,477
109,477
25.9%
3,548
0.8%
113,025
26.7%
26.1%
(2,629)
(2,629)
$1.65
Total
48
1,925,604
495,642
25.7%
21,948
1.1%
517,590
26.9%
26.6%
(5,030)
(5,030)
$1.75
MARTINEZ
B
258,326
14,398
5.6%
0.0%
14,398
5.6%
26.3%
53,443
53,443
$1.50
266,864
107,389
40.2%
0.0%
107,389
40.2%
40.2%
$1.40
Total
17
525,190
121,787
23.2%
0.0%
121,787
23.2%
33.4%
53,443
53,443
$1.41
248,205
4,887
2.0%
0.0%
4,887
2.0%
2.0%
$3.35
26
621,572
55,147
8.9%
0.0%
55,147
8.9%
7.8%
(6,625)
(6,625)
$2.78
128,454
20,673
16.1%
0.0%
20,673
16.1%
11.7%
(5,609)
(5,609)
$2.25
Total
37
998,231
80,707
8.1%
0.0%
80,707
8.1%
6.9%
(12,234)
(12,234)
$2.68
LAMORINDA
ALAMO/DANVILLE
A
126,821
4,464
3.5%
0.0%
4,464
3.5%
5.2%
2,110
2,110
$2.35
28
552,793
26,351
4.8%
0.0%
26,351
4.8%
4.9%
892
892
$2.29
12
203,913
18,461
9.1%
0.0%
18,461
9.1%
9.1%
$2.23
Total
43
883,527
49,276
5.6%
0.0%
49,276
5.6%
5.9%
3,002
3,002
$2.27
MARKET TOTAL
A
60
9,009,825
1,201,967
13.3%
148,629
1.6%
1,350,596
15.0%
15.4%
34,573
34,573
$2.11
202
6,226,740
837,708
13.5%
24,219
0.4%
861,927
13.8%
15.1%
79,540
79,540
$1.93
114
2,739,113
581,911
21.2%
4,816
0.2%
586,727
21.4%
21.6%
3,323
3,323
$1.44
Total
376
17,975,678
2,621,586
14.6%
177,664
1.0%
2,799,250
15.6%
16.2%
117,436
117,436
$1.92
376
17,975,678
2,621,586
14.6%
177,664
1.0%
2,799,250
15.6%
16.2%
117,436
117,436
4Q-13
376
17,975,678
2,690,266
15.0%
226,420
1.3%
2,916,686
16.2%
16.2%
(8,987)
(93,527)
$1.92
$1.88
3Q-13
376
17,975,678
2,702,205
15.0%
205,494
1.1%
2,907,699
16.2%
15.4%
(126,297)
(84,540)
2Q-13
376
18,031,548
2,625,368
14.6%
159,688
0.9%
2,785,056
15.4%
15.6%
20,936
41,757
1Q-13
376
18,031,548
2,682,706
14.9%
123,286
0.7%
2,805,992
15.6%
15.7%
20,821
20,821
COLLIERS INTERNATIONAL |
$1.87
$1.84
$1.83
P. 3
10.0%
16%
8.0%
12%
6.0%
8%
4.0%
4%
2.0%
0%
2Q12
3Q12
4Q12
1Q13
Vacancy Rate
VACANCY RATE
2Q13
3Q13
4Q13
1Q14
Unemployment
continues to hover
above 5%.
485 offices in
63 countries on
6 continents
United States: 146
Canada: 44
Latin America: 25
Asia Pacific: 186
EMEA: 84
> $2.1 Billion in annual revenue
> 1.46 Billion* square feet under management
> Over 15,800 professionals
0.0%
*Square footage includes office, industrial and retail property under management.
Residential property is excluded from this total. All statistics are for 2013.
Unemployment
UNEMPLOYMENT
COLLIERS INTERNATIONAL
$3.00
$2.75
800,000
$2.50
$2.25
500,000
$2.00
$1.75
200,000
$1.50
$1.25
-100,000
2Q12
3Q12
4Q12
Vacant SF
Asking Rents
VACANCY RATE
1Q13
2Q13
Net Absorption
3Q13
NET ABSORPTION
4Q13
1Q14
MANAGING PARTNER:
Brooks Pedder, SIOR
Executive Managing Director
Executive Vice President
TEL +1 925 279 5581
CA License No. 00902154
RESEARCHER:
Derek Daniels, CPRC
Research Analyst II
TEL +1 925 279 4620
$1.00
ASKING RENTS
Accelerating success.
www.colliers.com/walnutcreek