Northern California Industrial Demand Continues to Fuel Industrial Development in San Joaquin County
The San Joaquin County Industrial market has continued to experience a high volume of transactional activity and development as we head into the final quarter of 2018. A total of six industrial developments completed during the third quarter of 2018, totaling just shy of 2.7 million square feet, brought the year-to-date total for thirteen completed industrial developments to 5,941,050 square feet. Twelve projects remain under construction as we head into the fourth quarter of 2018 totaling just over 5.0 million square feet. The overall vacancy rate for the county was driven upwards to 6.0 percent as a result of an additional 870,725 square feet of sublet space becoming available. Positive net absorption for the county totaled 1.6 million square feet during the third quarter, driving the year-to-date total for net absorption to 4.3 million square feet. The average sales price for an industrial property in San Joaquin County during the third quarter equaled $116 per square foot, with an average cap rate of 5.4 percent. The overall average asking lease rate county wide totaled $0.49 per square foot, triple net (NNN).
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