Largest Sale of 2022 Closes Out Strong Year
The overall industrial vacancy rate in the Oakland I-80 / I-880 Corridor increased a mere 10 basis points from 2.8 to 2.9 percent in the fourth quarter of 2022. Net absorption was negative 72,016 square feet in the fourth quarter, while YTD net absorption was 653,512 square feet due to a strong first half of 2022. The combined average asking rental rates for industrial real estate increased $0.03 from $1.66 to $1.69 per square foot per month triple net (NNN), up from $1.46 per square foot NNN in the first quarter. The average asking rent for R&D/Flex properties decreased $0.05 from $3.66 to $3.61 per square foot NNN, equaling the second quarter average. It is expected that industrial vacancy will remain low, and overall rental rates will increase over the next few quarters.
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