Activity Levels Slowly Ramp Back Up
The third quarter industrial market showed an increase in activity after the economy, construction, and demand came to a halt due to the COVID-19 pandemic that emerged in the previous quarter. As mandates for shelter-in-place loosened, businesses slowly started to open their doors. The convenience of shopping online for consumer goods continues to drive demand for companies which are serviced by industrial and warehouse properties. The industrial market remains relatively insulated from the impacts of the pandemic from a business demand perspective.
Overall vacancy for industrial product in the Tri-Valley was relatively at at 7.1 percent. Weighted average asking rents are $0.83 NNN; up from $0.82 NNN year-to-year. As the mandate for cease of construction was lifted, completion of a preleased warehouse building was immediately occupied, bringing the net absorption to positive 391,502 square feet for the quarter.
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