An Unprecedented Challenge
The arrival of COVID-19 poses an unprecedented challenge to the fundamentally strong Oakland I-80 / I-880 Corridor’s industrial market. The long-term effects of COVID-19 remain to be seen; however, given the shelter-in-place orders were only issued in the last two weeks of the first quarter, statistics do not yet reflect much impact. In the first quarter of 2020, the Oakland I-80 / I-880 Corridor’s industrial market experienced another strong quarter as net absorption posted 1,011,016 square feet, and gross absorption was 2,393,751 square feet. The vacancy increased slightly from 2.9 percent to 3.0 percent as 1,177,241 square feet of industrial buildings were completed in the first quarter. Overall asking rents increased by $0.03 to $1.00 per square foot per month triple net (NNN) in the quarter.
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