Walnut Creek Q1 Industrial Market Report & Forecast
Industrial Market Remained Unchanged in the First Quarter
The North I-680 industrial market remained unchanged in the first quarter of 2014 with vacancy increasing 20 basis points to 8.0 percent. There was a total of 30,760 square feet of negative net absorption for the quarter. Total asking rents increased $0.01 per square foot (PSF) to $0.67 PSF. Martinez led the market in net absorption with 22,443 square feet, followed by Pacheco with 6,829 square feet. Concord gave back the most space with 62,434 square feet of negative net absorption.
All property types posted negative total net absorption. Industrial registered 17,243 square feet followed by R&D/Flex with 7,139 square feet, and warehouse with 6,378 square feet. The largest lease transaction of the quarter was Fort Knox’s 57,000 square foot renewal and downsize at Empire Business Park in Pittsburg. The majority of leasing activity was concentrated in Concord North Commerce and Concord Business Park. Bimbo Bakeries USA renewed 12,260 square feet of warehouse space. Verengo renewed 12,550 square feet of R&D/Flex space within Concord North Commerce. In Concord Business Park, Graybar Electric renewed 7,790 square feet of light industrial space. Kelly-Moore Paint renewed 6,680 square feet in the park as well. At 4070 Nelson Avenue, Orkin leased 3,618 square feet of new space. High End Development expanded 3,200 square feet in Concord Business Park.