Institutional Investment Sales Dominate Q1 2019
The overall vacancy rate for the San Joaquin County industrial market increased by the close of the first quarter of 2019 by 40 basis points to 5.6 percent, while the countywide direct vacancy rate is registering 5.0 percent. The increase in vacancy can be attributed to the large former Toys R Us facility located on Army Court that brought 655,976 square feet of vacant distribution space to market for lease. A total of ten industrial buildings, seven that are speculative developments, remain under construction throughout San Joaquin County totaling over 6.0 million square feet of which 2.5 million square feet has either been pre-leased or is a build-to-suit. Two industrial buildings that were under construction completed during the first quarter totaling 406,445 square feet. Only 68,229 square feet of the newly delivered industrial product remains available for lease. As we continue into 2019, just under 15.0 million square feet of industrial product remains in the planning phase of development. There are fourteen current vacancies in the market of either Class A or B product over 100,000 square feet that remain available, totaling 4.7 million square feet. Seven of those existing vacancies are second generation space with three that are offered as sublet space. The overall average asking lease rate for San Joaquin County increased to $0.51 per square foot, triple net.
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