New Speculative Construction Thrives on Low Vacancy & Record-Breaking Rents
The Northern California's Central Valley industrial market ended the first quarter of 2017 at 6.3 percent vacancy with net absorption in San Joaquin County totaling 478,705 square feet. Without much existing and functional available space ready to occupy, speculative construction has increased dramatically over the last twenty four months in order to meet demand. At the close of the first quarter, eight developments are under construction, totaling just under 3.0 million square feet. All eight of the projects are expected to be completed in 2017. By the close of the first quarter, San Joaquin County added 898,850 square feet to the industrial base due to the completion of the 518,927 square foot LBA Logistics Center in Lathrop and the 381,600 square foot Tracy Pescadero Distribution Center in Tracy. The overall average asking lease rate for San Joaquin County is $0.45 NNN.
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