Ending the Year on a Positive Note
The industrial market in the Tri-Valley fared well during this unprecedented year. With the completion of more than half a million square feet of new construction, overall net absorption reported positive 174,011 square feet by the end of 2020. Activity remained strong throughout the year resulting in 1.1 million square feet in total market transactions. In the second quarter, large blocks of space coming to the market pushed the overall vacancy upward over 2.0 percentage points from the end of 2019. Decreasing from 7.0 percent in the third quarter, vacancy across all sectors, reported 6.6 percent, sublease vacant space is 0.1 percent of this number. Asking rates decreased by nearly five percent to $0.80 NNN year- to-year. With the emergence of the pandemic at the end of the first quarter, mandates declared by the state ordered all construction to halt; resulting in the Tri-Valley industrial market’s demand to wane. In the second half of the year as the stay-at-home orders loosened, the market picked up, construction projects resumed, and activity levels shifted recording positive net absorption by the end of 2020.
Would you like to have future reports delivered directly to your inbox? Sign-up to this and other regional e-mail delivery lists.