Another Record Year For Industrial
On both the national and regional level, major economic indicators continue to trend positive. National unemployment continues to drop, finishing the second quarter at 4.0 percent, down from 4.1 percent in Q1. Despite the Federal Reserve raising interest rates twice within the first six months of 2018, the increased cost of capital seems to be having little impact on continued economic growth as seen in reported import/export volume and consumer confidence, which dipped only slightly from its Q1 peak. Investors continue to pursue favorable, dependable returns for long-term value investments, and looking at commercial real estate in particular, the industrial category—having delivered positive growth across every US market—outperformed all other sectors. Occupancy rates, asking rents, net absorption, as well as the breadth of the development pipeline, all indicate the strength of industrial real estate performance will continue.
Looking specifically at the I-80/I-880 Corridor, the economic pulse remains strong as many key market indicators signal growth ahead. Most notably, Oakland’s already historically low unemployment rate decreased 0.30 percentage points further, ending the second quarter at 2.7 percent which is among the very lowest in the nation. Employment demand fueled by an advance among economic influencers indicates that the trend will continue. Despite local headwinds from pressures around the workforce crunch, regional economic growth is continuing.
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