Fairfield, CA – Colliers International’s Fairfield office, which covers Solano, Napa and parts of Contra Costa counties, recently released market reports that indicate activity eased slightly in the first quarter of 2013.
After four consecutive quarters of increasing activity, the industrial market eased slightly in the first quarter of 2013 as the vacancy rate remained flat at 10.1 percent. Over the past year the vacancy rate has dropped 2.5 percentage points, a significant decline. Sales activity in the industrial market eased as well, as there was only one sale of 40,000 square feet or greater in the quarter, down from six sales of 40,000 square feet or greater in the prior quarter.
Napa County is quickly running out of available wine warehouses as there are only two wine warehouses greater than 50,000 square feet currently available.
As vacancy declines, the demand for new construction increases, and Buzz Oates Development is expected to break ground this spring on a two-building approximately 791,000 square foot warehouse/distribution center on Cordelia Road in Fairfield.
Development is picking up in Napa as well as Dennis Pauley is planning on building a 103,400 square foot warehouse on Technology Way in the Napa Valley Gateway Business Park. Additionally, many other developers are examining building opportunities in Napa County.
Contrastingly, demand remains thin in the office market in Solano and Napa counties. The vacancy rate for office properties in Solano and Napa counties rose from 25.9 to 26.3 percent and year-over-year the rate is up 1.3 percentage points.
The Colliers Fairfield office’s first quarter 2013 market reports detailing additional market insight and information for both industrial and office properties are enclosed.
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