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Industrial Report

United States | Northern California

Report | Northern California Industrial Outlook - Q4 2010

Summary

Submarket recovery is varying, but the overall industrial market is stabilizing as confidence increases.  Tech industries are adding Bay Area punch to already strong food services and logistics companies in Sacramento and the Central Valley. 
  • Oakland, Livermore, South San Jose and Santa Clara are entering industrial real estate cycles most friendly to tenants. Sunnyvale/Cupertino is most favorable to landlords.  Tenants still have the upper hand in markets overall.
  • Many companies are turning from old traditional industrial space to high-tech, collaborative ventures between several firms.
  • Sales activity is growing as investors enter the market in search of deals that may not exist in 12-18 months.
  • The region’s success in 2011-12 will rely heavily upon how much California and the nation embrace and mandate sustainability.

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