Record Development, Strong Absorption & Rising Lease Rates Start 2018
Activity in San Joaquin County has continued to push vacancy levels lower and drive lease rates upwards as available space has dwindled in the strong economy. New big box, concrete tilt-up Class A distribution and warehouse development has continued into the first quarter of 2018 with over 7.6 million square feet of speculative and build-to-suit construction currently underway. Two developments totaling 1,418,691 square feet completed during the fourth quarter of 2017 nudging the vacancy rate for the county upwards 30 basis points to 4.8 percent by the close of the quarter. The county would have experienced a decrease in vacancy to 4.1 percent overall had construction not completed at I-205 Logistics Center located in Tracy, California. Net absorption for the fourth quarter totaled 1,028,172 square feet increasing the overall net absorption for 2017 to over 4.8 million square feet. The average asking lease rate for the county at the end of 2017 equaled $0.52 per square foot, triple net..
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