Northern California’s Central Valley Industrial Update
The San Joaquin County industrial market vacancy rate increased by 30 basis points to 6.0 percent year end 2021. A total of three speculative industrial buildings delivered during the quarter totaling just under 1.5 million square feet, increasing the total square feet delivered in 2021 to 4.7 million square feet. Development continues as the new year passes with seven industrial buildings under construction totaling 3.8 million square feet. Since 2016, when speculative development in the county re-emerged, the total inventory has grown by 25 percent totaling over 125 million square feet as we begin 2022. Net absorption for the county was positive 1,015,491 square feet for the final quarter of 2021 increasing the total net absorption for the year to 6.5 million square feet. Weighted average asking lease rates in San Joaquin County continued to push upwards increasing by $0.02 per square foot to $0.63 per square foot, triple net.
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