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Over 6 million square-feet of excess industrial demand targeting Northern California

​​•Currently, an estimated 36.5 million square-feet of tenant demand is targeting Northern California. There is 26.7 million square-feet of available space that is existing and 8.6 million square feet that is under construction and available. This leaves 1.2 million square-feet of excess tenant demand. The crunch for space is especially apparent in the North Bay and East Bay where 44.0 percent and 13.0 percent of tenant requirements, respectively, will be unable to occupy space.

• The industrial leasing environment in the Bay Area has grown increasingly competitive, with markets recording falling vacancy rates for the 22nd consecutive quarter. Many of the big box requirements are shifting to surrounding markets, prompting an influx of construction activity as a result.

•.With 1.2 million square-feet of excess requirements spread across Northern California, many tenants are left waiting on the sideline until new developments come online. Tenant demand is projected to outpace supply well into 2019, a promising outlook for developers looking to invest in the area.




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