Demand Drives an Increase in Asking Rates
Industrial continues to be the strongest property type in the Tri-Valley. Vacancy levels continue to decline since the beginning of the year, settling at 6.7 percent by the end of the third quarter. Incredible demand for properties under 25,000 square feet has fueled an upward push in asking rates; causing an 8.3 percent increase to $0.91 per square foot, in twelve months. Additionally, the tempering of new construction in the second half of the year has limited the supply of new inventory causing a positive net absorption of 86,678 square feet.
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