Tight Market Demands More Spec Construction
The San Joaquin County Industrial market experienced a high volume of activity throughout the second quarter of the year with completion of a number of speculative and build-to-suit construction projects, numerous notable institutional transactions and record positive absorption. The overall vacancy rate for the county was driven upwards to 5.1 percent as a result of over 3.25 million square feet having been delivered by the end of the quarter. As we speed in to the second half of 2018, twelve industrial warehouse developments throughout the county totaling close to 5.0 million square feet continued on pace with deliveries expected through late 2019. The demand for industrial space in San Joaquin County pushed absorption to an eye-popping 2.4 million square feet in the second quarter of 2018. As existing options and availability for tenants in the market have tightened and driven lease rates upwards, owners and brokers now market their listings with lease rates as negotiable.
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