Pleasanton Spotlights Tri-Valley Industrial
Pleasanton stole the limelight for large industrial transactions that occurred during the first quarter of 2019, which is an exception to the rule, given Livermore’s identity as the primary industrial market in the Tri-Valley region. With some significant new, big box, distribution/manufacturing buildings coming online in Livermore this quarter, and with two large industrial transactions occurring in Pleasanton at the same time, the vacancy rate for the Tri-Valley region’s industrial market ticked up from 4.9 percent in the prior quarter to 5.0 percent at the end of March of this year. The net absorption for the first quarter of 2019 ended at a negative 36,282 square feet. With the new construction, the combined light industrial and warehouse markets for Livermore, Dublin and Pleasanton now total 20,079,056 square feet. Despite large new buildings coming online and increased vacancy, finding multi-tenant industrial space between 5,000 to 50,000 square feet continues to be a challenge for most Tri-Valley industrial users. In Livermore, the weighted average asking rate for warehouse space per month is currently quoted at $0.79 per square foot, triple net (NNN); while last year at this time it was $0.69 per square foot, per month, NNN. On the light industrial side in Livermore, that same number has increased to $1.00 per square foot, per month, NNN.
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