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Industrial fundamentals are strong as the North Bay attracts new and expanding tenants

  • North Bay industrial product is attracting a multitude of tenants, beyond its traditional base of wine-related production and food and beverage manufacturing. North Bay industrial vacancy has stayed in the 4.3 to 4.4 percent range since 2016, even with the delivery of 2.7 million square feet of new product. Rental rates have increased about 47% since 2013, yet demand has stayed strong, in part because North Bay rents are competitive compared to the East Bay and San Francisco.

  • Strong demand is driving new development activity; first quarter construction deliveries totaled 118,000 square feet. At the end of the quarter, 660,000 square feet were under construction, and of the planned 2018 deliveries, almost half have been pre-leased.

  •  Further absorption is expected, as strong demand and limited availabilities in nearby markets cause tenants to favor the North Bay.

Source: JLL Research




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