Regional distribution continues to drive the tight industrial market in Solano and Napa counties in 2017. Construction of new warehouses continues as a result of this steady demand. The vacancy rate in the region increased in the second quarter to 7.3 percent from 6.2 percent. Net absorption for the quarter was negative 218,847 square feet. Average asking rates declined by one cent to $0.52 per square foot per month Triple Net (NNN) in the quarter.