Snapshots

Industrial rent growth slowing down, but still growing in East Bay

After two years of more than 22.0 percent year-over-year rent growth in the East Bay industrial market, average asking rent growth has slowed down significantly.

December 18, 2019
  • After two years of more than 22.0 percent year-over-year rent growth in the East Bay industrial market, average asking rent growth has slowed down significantly. YTD asking rates are, on average, $0.90 NNN, up $0.04 from 2018.
  • Year-over-year rent growth is the lowest the market has seen since 2012; currently, rents are up 4.7 percent from 2018. While this is still a healthy rate of growth, it may be indicative of more modest gains in lease rates as supply and demand dynamics stabilize.
  • The demand for last-mile space in the East Bay, especially the Interstate-880 corridor will only increase, due to the growing demand of online purchases and fast delivery times. With a vacancy rate of only 5.4 percent, asking rents will continue to increase, but not at the rates seen in previous years. 

Source: JLL Research

Like what you read?