Warehouse Demand Accelerates
The industrial vacancy rate in Solano and Napa counties decreased in the third quarter of 2020 from 5.6 percent to 4.1 percent. The vacancy decline is directly related to an increase in the demand for warehouse space during the pandemic. The e-commerce industry was already growing rapidly prior to the onset of the pandemic, and that growth has accelerated over the past two quarters as consumers have embraced the e-commerce and home delivery model for an increasing amount of their purchases. Net absorption for the third quarter was positive 1,086,259 square feet and for the year it is positive 1,397,525 square feet. Average asking rates increased by $0.02 to $0.68 per square foot per month triple net (NNN) this quarter.
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