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Sub-100,000 square-foot deals make up an increasing portion of East Bay industrial market activity

Deals under 100,000 square feet make up 40.0 percent of year-to-date market activity by square feet

June 12, 2019
  • Deals under 100,000 square feet make up 40.0 percent of year-to-date market activity by square feet. On average, sub-100,000 square-foot deals have made up an increasing portion of overall market activity, increasing 91.1 percent since 2012.
  • Tenants seeking 200,000 square feet or more are favoring the Central Valley, where there are more large-blocks available and where rents are more competitive. Market activity in the East Bay for deals 200,000 square feet and larger peaked in 2016, where it constituted 46.0 percent of overall market activity on a square-foot basis. Since then, large-block leases have made up a decreasing share of market activity as tenants opt for the Central Valley, even as new development has been dominated by large-block spaces.
  • The tenant mix is healthy compared to neighboring markets, with tenants seeking less than 100,000 square feet of space making up 63.3 percent of active requirements. Although there is some activity on the larger, new construction projects, demand from smaller tenants is likely to make up a similar share of market activity compared to recent years.

    Source: JLL Research

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