Given the current reduced inventory of industrial and warehouse properties for lease or sale in the Tri-Valley region, the market is also exhibiting reduced transaction volume; it seems that as soon as a property is leased or sold, one hopes that another might become available. Many tenants coming off five or ten year leases are surprised at their landlord renewal offers, as they can often be as high as fifty percent over their remaining lease payments. The overall vacancy rate for light industrial and warehouse buildings in the Tri-Valley ticked up to 1.0 percent, which, from a base of 0.9 percent the previous quarter, is significantly flat. By the end of 2018, there was only 200,287 square feet available from a market total base of 19,621,047 square feet in the entire Tri-Valley region.
Have future reports delivered directly to your inbox - click here to subscribe to this and other regional e-mail delivery lists.