PREPARED BY CHRISTINE SLONEK AND ELIZABETH HART
408-727-9600 Mountain View Office Market
cslonek@ccarey.com Submarket Update – 3rd Quarter, 2009
ehart@ccarey.com
_______________________________________________________________________________________________________________________________
Market Statistics
Total Inventory Vacancy Net Absorption Mountain View Office Market
(sf) (%) (sf) H istorical Vacancy vs Asking Rates
DOWNTOWN MOUNTAIN VIEW 1,243,024 8.91% 18,397 8.5% $3.60
MOUNTAIN VIEW 5,879,609 8.02% (32,312) 8.0%
$3.40
7.5%
SILICON VALLEY 59,767,739 19.64% (207,287)
7.0% $3.20
Availability 6.5% $3.00
Total Available Direct Sublease 6.0%
6.3%
6.3%
8.3%
8.3%
8.0%
(sf) (sf) (sf) $2.80
5.5%
DOWNTOWN MOUNTAIN VIEW 110,738 79,346 31,392
5.0% $2.60
MOUNTAIN VIEW 471,805 411,201 60,604 Q 3'08 Q 4'08 Q 1'09 Q 2'09 Q 3'09
SILICON VALLEY 11,740,004 10,191,181 1,548,823 Vacancy (%) Asking Rate ($)
After sitting at 8.3% for the previous two quarters, the vacancy rate in
the Mountain View office market actually dipped to 8.27% in the
Second Quarter. In the downtown Mountain View submarket, two
Vacancy Rate Decreases
deals completed at the end of the Second Quarter drove the vacancy
rate down by two percentage points continued to to 10.39%. One of
While across the Bay Area vacancy from 12.39% rise, Mountain
these deals one of17,589 square foot sublease betweenvacancy
View was was a the few markets this quarter to see eBay/PayPal
(sublessor) and Webjuice Media to many markets with double
rates decrease by .3%. Relative (sublessee) at 303 Bryant Avenue.
digit vacancy, Mountain View has remained in the single digits
Two buildings in the downtown market, 650 Castro Street and to
throughout this downturn due to its continued attractiveness 800
W. Eltechnology community. leased for several quarters but now
the Camino, have been fully
have direct space available. There are also three large spaces available
for sublease, ranging fromdecreasesquare feet at 444 Castro Street to
One contributor to the 10,120 in vacancy was an 11,790 sf
another 17,589 square feet 444 Castro in downtown Mountain
transaction by Red Hat at space at 303 Bryant. Although the asking
rates on theseRed Hatare lower than on direct spaces,elected tonot
View. While spaces evaluated other markets, they they are
significantlyalower because either the master leases in Mountain at a
complete 7 year transaction/expansion and stay were signed
time when thelarger deals are still relatively few and far between,
View. While rents were
deal flow in the sub 5,000 sf range has picked up within the
quarter.
444 Castro Street, Mountain View
trend of companies doing short term renewals as they wait to see
what the economic future brings.
Asking rates decreased by $.13 this quarter to an average of
$2.85 Full Service. The year-over-year reduction has been more
than 20%, which, while severe, is a much lower percentage than
many of the markets who have seen up to a 50% reduction in
asking rates.
Notable assets in downtown Mountain View dropped their
asking rates this quarter, like 800 El Camino going from $4.00 to
$3.75 Full Service and 100 View Street dropping from $3.75 to
$3.25 Full Service. Overall, many transactions are still being
completed at a lower rate than is being asked by landlords as
landlords continue to fight to maintain and increase occupancy
of their assets.
800 El Camino Real, Mountain View
SUBMARKET UPDATE

PREPARED BY CHRISTINE SLONEK AND ELIZABETH HART
408-727-9600 Mountain View Office Market
cslonek@ccarey.com Submarket Update – 3rd Quarter, 2009
ehart@ccarey.com
_________________________________________________________________________
Significant Lease Transactions
Square
Tenant Feet Type Location
Red Hat 11,790 Direct Lease 444 Castro Street Suites 500 & 1110, Mountain View
Rhythm New Media 5,177 Renewal 800 El Camino Real (W) Suite 100, Mountain View
Flashbay Limited 3,784 Direct Lease 569 Clyde Avenue Suites 400 & 510, Mountain View
University Of Southern California 3,249 Direct Lease 480 San Antonio Road (S) Suite 100, Mountain View
Significant Lease Availabilities
Property Landlord SF Type Price
2440 El Camino Real (W), Mountain View Tishman Speyer Properties 55,290 Direct Lease $2.75 NNN
465 Fairchild Drive, Mountain View Nearon Enterprises, LLC 21,784 Direct Lease $2.00 Gross
2700 Garcia Avenue, Mountain View BE-Witched, LLC 18,522 Direct Lease $1.25 NNN
301 Whisman Road (N), Mountain View Peery/Arrillaga 17,100 Direct Lease $1.95 NNN
1981 Landings Drive, Mountain View Broadreach Capital Partners 16,388 Direct Lease $2.65 FS
Office Availability by Submarket
(Millions of SF)
0.16
0.52
0.59 0.20
3.13
0.47
2440 El Camino Real (W), Mountain View
0.03
1.59
Forecast 5.04
Steady vacancy with small dips and rallies throughout the next
few quarters as the general market begins to recover. Asking
rates continue to decline in order to compete and maintain its
tenants in a Valley where there are many other economical
submarkets that can be considered. Continued expansion by Campbell Cupertino Los Gatos
tech tenants taking advantage of the downward market. Milpitas Mountain View San Jose
Santa Clara Saratoga Sunnyvale
SUBMARKET UPDATE