Demand & New Construction Drive Rent Growth
The San Joaquin County overall industrial market vacancy at the close of the third quarter increased only slightly by 20 basis points to 7.4 percent as the COVID-19 pandemic continues; however, it is having little effect on the market. Over the course of the following few quarters, the county will see numerous large developments currently underway complete and immediately absorb with leases in place prior to completion. Total net absorption for San Joaquin County during the third quarter equaled 775,399 square feet, increasing the year-to-date net absorption to just shy of 3.0 million square feet. Four industrial buildings were completed during the quarter adding more than 1.0 million square feet to the base inventory. Year-to-date development has totaled over 2.8 million square feet; while just under 4.5 million square feet remains under construction throughout the county. Notable industrial sales in the county took place in multiple submarkets. The overall weighted average asking rate for the county remained relatively flat at $0.53 per square foot, triple net.
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