San Mateo County Industrial Market Report
San Mateo County Overview
San Mateo County, located in the San Francisco Bay Area of California, enjoys strategic advantages due to its proximity to San Francisco, Silicon Valley, and key transportation hubs. This positioning makes it an appealing choice for a variety of businesses. The county’s industrial sector is primarily fueled by its nearness to technology centers, biotech industries, and other commercial sectors. The surge in e-commerce, logistics, and the demand for last-mile delivery solutions also drives economic activity.
A notable challenge San Mateo County faces is the limited land availability. Bounded by the Bay on one side and mountains on the other, the scarcity of land has consistently been a concern. Consequently, industrial spaces in the county are often in high demand, leading to premium pricing.
Due to the combination of high demand and restricted supply, rental rates and property values for San Mateo County industrial spaces tend to be higher. Premiums are frequently associated with locations that provide convenient transportation access or are close to major commercial centers.
As of 2023, there was a growing emphasis on sustainability and adopting green building practices in the industrial real estate sector. Companies actively sought spaces that prioritized energy efficiency maintained a minimal carbon footprint, and were equipped with modern amenities. The county faced challenges related to traffic congestion and transportation infrastructure, which had the potential to impact the smooth movement of goods.
The future outlook for the industrial real estate market in San Mateo County is anticipated to remain robust, primarily owing to its strategic location. However, it was recognized that addressing infrastructure challenges and ensuring sustainable growth were crucial for the long-term well-being of the market.
The following report includes industrial market data on these submarkets:
- San Mateo
- Belmont/San Carlos
- Redwood City
- Menlo Park
- San Bruno/Millbrae
- Foster City
To take a deep dive into each of these submarkets, please download the report today.