Low Vacancies and Peak Asking Rates
The Tri-Valley industrial market has not witnessed a remarkably low vacancy of 2.3 percent since early 2018. The incredible demand for warehouse product type over the last few years consumed almost any vacancy the industrial market carried in the previous quarters. Continued demand with limited available space pushed the overall asking rates upward, increasing nearly 40.0 percent in one year to $1.18 per square foot NNN. The market has seen seven consecutive quarters of positive net occupancy gains and year-to-date marketwide absorption reported nearly 500,000 square feet at the close of the fourth quarter.
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