7.0MM s.f. of industrial leases (20k s.f. +) set to expire by 2021
After years of the industrial market struggling post Recession, Sacramento demand picked up significantly in late 2015, early 2016.
May 01, 2019
- After years of the Sacramento industrial market struggling post Recession that saw vacancy rates in the high teens and medium to large blocks of space available all throughout the market, Sacramento demand picked up significantly in late 2015, early 2016. Leasing activity began to spike and the vacancies in the primary submarkets began to dwindle. The vacancy rate began to dwindle and even fell under 4.0% for the very first time in the markets history.
- As a result, tenants soon found themselves facing a barren market and a lack of suitable options across the market.
- It appears relief may be on the horizon as many of the three, four, or five year deals signed over the last few years are set to expire in the next coming quarters. Between the five primary submarkets, 7.0 million s.f. across 94 deals are set to expire by 2021. While many of these will wind up renewing, the possibility of so much space hitting the market should be enough to get tenants excited.
Source: JLL Research
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