According to CBRE Research, the overall asking average office lease rate for first quarter 2017 increased for the 26th consecutive quarter to $4.76 full service gross, a 0.6% increase quarter-over-quarter. Silicon Valley posted positive occupancy gains for the 16th straight quarter with 419,162 square feet of net absorption.

CBRE Group Inc. also handled the disposition of a 1.35-acre development parcel located in Foster City, CA. This development site is located on Metro Center and Shell Boulevards in the master-planned development area known as Town Center.

The extremely rare infill property was purchased by MPQ Investment & Development, a local commercial developer of infill sites within the Peninsula after a competitive marketing effort by CBRE. MPQ ultimately purchased the property at an undisclosed price without entitlements, though a number uses are deemed viable for the completely flat and highly visible corner site, including hotel, office, retail and potentially, residential uses—all in a mixed-use retail format.

Bruce Paris of CBRE's national land services group based on the Peninsula, in conjunction with Ronald Kilby of CBRE's Silicon Valley occupier services, arranged the sale on behalf of the seller.

“Strategically located in Foster City's Town Center area, the site was originally entitled for a restaurant under the Foster City Town Center Master Plan and will remain part of the Town Center commercial owner's association. It will require both governmental as well as non-governmental approvals to include architectural, massing, access and easement relocations,” said Paris. “This was a very competitive opportunity, and we were able to generate nine qualified offers for this prestigious infill development site. Ultimately, MPQ's offer and unconstrained development plan was seen as the most advantageous option for the seller, which had determined the site surplus to its primary real estate needs.”

At the time of sale, the property was completely vacant and had never been previously developed despite the surrounding class-A office buildings, existing retail, Highway 92 proximity and prestigious Foster City Town Center location. This will complete the final phase of the Town Center Master Plan which was originated and approved some 20-plus years ago which includes Metro Tower, Safeway and some approximately 2.4 million square feet of office, retail, hotel, childcare and residential space.

CBRE also arranged the $15 million sale of 499 Jackson St., a class-A office building located in San Francisco. Situated in historic Jackson Square, this “jewel box” building is 92% leased to six tenants.

Seth McKinnon and Tyler Meyerdirk of CBRE's capital markets team in San Francisco arranged the sale on behalf of the seller, with the assistance of CBRE retail leasing broker Laura Sagues, vice president. This deal comes on the heels of a record price set at neighboring property, 807 Montgomery, also arranged by McKinnon and Meyerdirk.

In the East Bay, Michael Barry and Bob Ferraro, both senior vice presidents in CBRE's Oakland office, have leased the new 163,000-square-foot Comstock Industrial Center located at 2388 Williams St. in San Leandro, CA. This project is another example of new construction leasing at or prior to completion. It also points to high demand for contemporary product with 32-foot clear height and ESFR sprinkler systems.

This was the first new industrial development in San Leandro in 15 years and was fully leased by the CBRE team before completion to two tenants on behalf of the landlord, Comstock Realty Partners. The warehouse is strategically located off Doolittle Drive, ¼ mile from Oakland International Airport and 10 miles from the Port of Oakland.

Barry and Ferraro also closed a 99-month lease on behalf of landlord Hager Pacific Properties for a 119,000-square-foot warehouse in Oakland, CA. Located at 955 Kennedy St. on 4.62 acres, the property provides 425 feet of I-880 Freeway frontage, along with abundant parking and a fenced parking/yard. Chris van Keulen, vice president, CBRE Oakland and Amy Chadick, senior transaction manager with CBRE Dallas' global workplace solutions group, represented the tenant.