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Tight industrial market conditions drive rents to $0.80 per square foot in 2017

  • ​East Bay industrial vacancy has hovered around 1.7 percent, with rents reaching up to $0.80 per square foot at the end of 2017 and trending towards $0.85 for new Class A in early 2018. Lack of available space and high rental rates are a concern, but demand for space in the East Bay remains strong. Many occupiers with strong consumer demand and labor advantage are willing to accept the competitive environment to locate in the East Bay. More than 3.0 million square feet of leases have been renewed during the past two years, and 51 tenants are currently in the market for space totaling 5.6 million square feet.  
  • With the increase in deman​​​d for last-mile delivery, the proximity to the Port of Oakland, and as a central location to a growing Bay Area population of almost 8.0 million people, the East Bay will stay a highly desirable location. However, tight market conditions will prompt more tenants to look for lower-cost alternatives in markets like North Bay, Livermore, and Central Valley, areas that are already receiving heavy spillover from the East Bay.​

Source: JLL Research, CA Dept of Finance, January 2017 ​

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