Continued Demand Narrows Vacancy Gap
Demand for light industrial and warehouse product in the Tri-Valley has not wavered, evident by the continued decrease in overall vacancy. In twelve months, vacancy decreased 330 basis points to 3.9 percent. As the vacancy gap continues to narrow, the second quarter reported a net occupancy gain of 18,222 square feet. Year-to-date gross absorption increased nearly 26.0 percent in one year, registering more than 660,000 square feet by end of the second quarter. Average asking rates across all product types increased 8.6 percent to $1.01 per square foot, NNN from the previous quarter, marking the highest asking rate in the Tri-Valley in four years.
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