Weather the Storm
Despite the massive headwinds local and national economies are facing, industrial real estate, especially larger warehouse/distribution centers, are expected to weather the COVID-19 storm with less impact than many other real estate sectors. Given the shelter-in-place orders in Solano and Napa counties were only issued in the last two weeks of the first quarter, the statistical impact was minimal with the industrial vacancy rate declining from 5.1 percent last quarter to 4.7 percent this quarter, while a larger impact is expected in the second quarter. Net absorption for the quarter was positive 197,970 square feet. Average asking rates increased by $0.01 to $0.64 per square foot per month triple net (NNN) this quarter.
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