Northern California’s Central Valley Industrial Update
The San Joaquin County industrial market vacancy rate decreased by 50 basis points to 5.8 percent by the close of the third quarter of 2021. A number of record breaking sales transactions occurred during the quarter with sub 4 percent cap rates located throughout the county. Net absorption for the county was positive 1,145,293 square feet with leases greater than 100,000 square feet reaching double digits. Gross absorption totaled 3.2 million square feet in the county. Three industrial buildings delivered during the quarter totaling 557,576 square feet, increasing the year-to-date total of completions to 3.2 million square feet. An additional 5.3 million square feet is currently under construction as we approach 2022. Weighted average asking lease rates in San Joaquin County continued to push upwards increasing by $0.02 per square foot to $0.61 per square foot, triple net.
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