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Lack of industrial supply driving Class B rents across the East Bay

  • Space in the East Bay is limited, as market-wide vacancy rate sits at 2.1 percent. Even fewer options are available for quality space, shown by zero vacancy for Class A industrial product in 6 out of the 6 submarkets.
  • With no Class A buildings available across all submarkets, tenants are signing as high as $0.74 NNN for Class B product in core markets, a high-water mark for older product.
  • Tenants looking to locate in the East Bay are forced to either wait on the sideline for new deliveries or expand their search to include nearby markets. These companies include the consumer goods, electronics, and meal prep industries, along with logistics companies looking to compete for contracts. Smaller companies with more conservative budgets, however, are struggling to maintain local operations as steep labor and real estate costs are increasing the cost of doing business in the area.​

Source: JLL Research, U.S. Census Bureau, 2016​

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