Northern California's Central Valley Industrial Market Update
The San Joaquin County industrial market, located within Northern California’s Central Valley, observed a 40 basis point decrease in overall vacancy from 7.4 percent to 7.0 percent by the close of the first quarter of 2020. The County experienced a healthy volume of activity during 2019, with 8.3 million square feet of gross absorption and over 5.5 million square feet of Class A industrial space having been delivered. In the first quarter 2020, more than 800,000 square feet of industrial space was absorbed and 4.85 million square feet of industrial development remains under construction. Two large institutional portfolio sales took place this quarter. The first was Prologis' acquisition from IPT of 236 properties in 24 geographic areas across the U.S. The portfolio totaled 37.5 million square feet and was reportedly 96.0 percent leased when the sale closed. The second portfolio sale, including only one industrial building in San Joaquin County but nine properties in total, was the result of Blackstone acquiring 1.32 million square feet from Panattoni Development. Weighted average asking lease rates for San Joaquin County at the close of the first quarter of 2020 remained at $0.55 per square foot, triple net.
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