An Improving Market as Vacancy Decreases and Rental Rates Climb
The Tri-Valley industrial market remains resilient a year after the beginning of the pandemic. Though marketwide vacancy levels increased 60 basis points year over year, high demand for warehouse product leading to strong leasing activity, resulted in a decrease in vacancy of 10 basis points to 7.5 percent since last quarter. Asking rates continue their upward trajectory, increasing 7.0 percent to $0.89 per square foot, triple net in twelve months. Completed construction in the second quarter added to the vacancy; however, a handful of lease and sale transactions resulted in a positive net occupancy gain of 56,636 square feet in the second quarter. Quarterly deal volume registered 223,270 square feet, a 46.0 percent increase in twelve months.
Would you like to have future reports delivered directly to your inbox? Sign-up to this and other regional e-mail delivery lists.