Expected to Outperform
The Solano and Napa counties industrial market’s vacancy rate increased in the second quarter of 2020 from 4.4 to 5.4 percent. The COVID-19 pandemic and the ongoing recession has and will continue to affect all sectors of the economy, however industrial real estate is expected to outperform other sectors as the e-commerce delivery model continues to grow exponentially. Net absorption for the second quarter was positive 201,775 square feet and for the year it is positive 399,754 square feet. Average asking rates increased by $0.02 to $0.66 per square foot per month triple net (NNN) this quarter.
Three speculative warehouses totaling 734,828 square feet were completed in the second quarter, the largest single quarter total since Q1’17. The three buildings were: 2370 North Watney Way and 2200 Courage Drive in Fairfield as well as 2121 Icon Way in Vacaville.
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