DreamWorks, SunEdison tip office market; Peninsula 'rent spike' ahead?
February 18, 2011
By J.K. Dineen

Big tenants are soaking up nearly 1 million square feet of empty office space on the Peninsula, giving the hard-hit market a solid start to 2011.

In Belmont, SunEdison LLC took 117,000 square feet at 600 Clipper Drive, a building where Volkswagen's electronics research lab also recently took 40,000 square feet. At Pacific Shores Center in Redwood City, PDI/DreamWorks SKG has a pending 200,000-square-foot deal that would allow it to grow by 50 percent. In San Carlos, the County of San Mateo has bought the 208,000-square-foot complex at One and Two Circle Star and will fill the long-vacant buildings with government workers.

... George Fox, a broker with Studley, which represents tenants, said there are still plenty of options for tenants willing to be flexible on location. He said he has several clients needing 40,000 square feet to 50,000 square feet, and each has eight to 10 decent options.