Record Deliveries on the Horizon for the Central Valley
The San Joaquin County industrial market continued to see vacancy levels decrease to a historical low of 4.5 percent by the close of the first quarter. Institutional development has continued to thrive as the county continues to face a shortage of space across all product types and size ranges. As current build-to-suit development for companies such as Amazon, Medline and Ghirardelli approach completion, existing Class A facilities that they currently occupy are coming to market as either a sublease or direct term. During the second and third quarter, the 100,000 square foot and greater tenant will expect to see a few additional options available to them in addition to the new speculative construction that is expected to become available during that same time frame. However, with demand for space not slowing, do not expect that these vacancies will remain available for long. Development, both speculative and build-to-suit, remained at over 7.6 million square feet currently under construction in the county. Net absorption for the quarter totaled 331,553 square feet, less than the current average that San Joaquin County has experienced since the Great Recession.
Have future reports delivered directly to your inbox - click here to subscribe to this and other regional e-mail delivery lists.