Q2 Heats Up Into Overdrive
Over the summer months, market activity tends to shift into a lower gear. The second quarter, however, has continued to see steady activity resulting in a consistently shrinking inventory of less turnkey space, and consequently continuously rising prices. The Northern California’s Central Valley office market vacancy rate was 10.5 percent at the close of the second quarter. Available space for office has declined from mid-year of 2016 when the vacancy rate stood at 11.1 percent. That decline of available space is seen across all of the product classes, with majority attributed to Class A and Class B space. Net absorption year-to-date for San Joaquin County totaled 46,171 square feet at mid-year 2017 compared to 5,143 square feet at this time 2016. Average asking lease rates increased through 2016 and by mid-year 2017 those average asking lease rates now stand at $1.57 per square foot. Average asking lease rates for Class A office space in Northern California's Central Valley are $1.96 per square foot, FSG.