Industrial Market Is Expected to Remain Strong
FAIRFIELD, CA – Colliers International’s Fairfield office, which covers Solano, Napa and parts of Contra Costa counties, recently released third quarter market research reports showing there was a significant decline in the vacancy rate in Solano and Napa County’s industrial market. The combined vacancy rate for both counties dropped from 7.3 percent to 5.2 percent in the quarter, which represents the largest one quarter decline in over a decade.
By contrast, the Solano and Napa counties’ office market experienced a relatively quiet third quarter of 2017. The vacancy rate increased slightly from 14.9 percent to 15.5 percent in the quarter. Unemployment rates rose in Solano County to 5.5 percent and rose in Napa County to 3.8 percent in the third quarter, a change from the gradual decline that had taken place over the past few years.
The industrial vacancy rate in Solano and Napa counties continued at historically low levels in the third quarter. Solano County’s industrial vacancy rate is 6.5 percent and Napa County’s is only 1.8 percent. These low vacancy rates are driving the high levels of recently completed construction, construction underway, and millions of square feet of construction planned for 2018. Wine and wine related businesses, food companies and e-commerce remain the leading growth industries in the region. Looking forward, the industrial market is expected to remain strong through the end of the year and into next year given the continued demand of both leasing and purchasing industrial product as an investment.
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