Warehouse Demand Remains Stable
The overall industrial vacancy rate in the Oakland I-80 / I-880 Corridor increased minimally in the fourth quarter of 2020 from 3.6 percent to 3.7 percent. The demand for warehouse product remains strong in the Oakland I-80 / I-880 Corridor due to the rapidly expanding e-commerce industry. The e-commerce industry was already experiencing robust growth prior to the onset of the pandemic, and that growth has accelerated during the pandemic. Gross absorption was 1,095,355 square feet in the fourth quarter, and 6,299,604 square feet for the year, the highest annual total since 2016. Warehouse product accounted for 4,265,986 square feet of the annual gross absorption. The combined average asking rent for industrial and warehouse properties is $0.95 per square foot per month triple net (NNN) and for R&D/Flex properties it is $1.95 per square foot NNN.
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