With last week’s sale of a 459,000 square foot office building block in San Jose to a Brookfield Asset Management fund, Equity Office Properties has sold more than 3 million square feet of space in the last 18 months.
A company profile for Equity Office Properties, including a year-by-year investment analysis and transaction history, can be obtained through RCA’s Company Profiles.
The latest deal includes the 373,754-square foot Rio Robles office park, which consists of seven buildings, as well as the 85,585 square foot 3553 North First St., located adjacent to the Rio Robles Properties.
Ben Thypin, Director of Market Analysis for global commercial real estate research firm Real Capital Analytics, said that the sell-off isn’t surprising given a 5- to 7-year hold strategy, also stressing the abundance of institutional investor money currently looking for opportunities in core markets.
“There’s certainly a lot of demand in your market,” Thypin said.
It is without a doubt that the San Jose area has seen a strong increase this year in office investment sales activity: According to data from RCA, $2.25 billion worth of office changed hands through October, a 70 percent increase over last year. RCA’s Commercial Property Price Indices, which measures the change in commercial property prices over time based on numerous inputs, shows pricing in the San Jose area has jumped 11 percent year over year and have now reached 91 percent of their 2007 peak.