November 16, 2012, Fairfield, CA – Colliers International’s Fairfield office, which covers Solano, Napa and parts of Contra Costa counties, released market reports this week that indicate the industrial real estate market is experiencing a broad recovery.
The industrial vacancy rate for Solano and Napa counties declined to 12.4 percent, down 1.0 percentage point from the prior quarter and 2.0 percentage points for the year. Sales activity in the third quarter remained strong. The largest sale in the quarter was the purchase of 500 Crocker Drive in Vacaville, a 4-building 681,500 square foot processing and warehouse facility occupied by Mariani Packing Company. “There has been a dramatic increase in leasing and sale activity from both users and developers. We have done more leasing and sales in the first nine months of 2012 than in the prior 2 years combined,” said Phil Garrett, Managing Partner of Colliers International’s Fairfield office.
Sales of premium California wines were up 14 percent year-over-year for the 12-month period ending in July, according to Nielsen Holdings, the market research company. This post-recession rebound in the wine industry continues to tighten inventory in Napa County, where the industrial vacancy rate is only 8.7 percent.
Contrastingly, in spite of the gradual recovery that is underway as a whole in the greater economy, the office market is facing a long road ahead in the path to recovery. The office vacancy rate in the third quarter of 2012 in Solano and Napa counties decreased minimally from 25.8 to 25.3 percent.
First and foremost among the challenges facing the office market is high unemployment rates, particularly in Solano County, where the unemployment rate was 10.0 percent in August. However, this does represent an improvement from the 10.3 percent rate in July and the 11.5 percent rate from a year ago.
The Colliers Fairfield office’s third quarter 2012 market reports detailing additional market insight and information for both industrial and office properties are enclosed.
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Colliers International is the third-largest commercial real estate services company in the world, with over 12,300 professionals operating out of more than 520 offices in 62 countries. A subsidiary of FirstService Corporation (NASDAQ: FSRV; TSX: FSV and FSV.PR.U), it focuses on accelerating success for its clients by seamlessly providing a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and research. Commercial Property Executive and Multi-Housing News magazines ranked Colliers International the top U.S. real estate company. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world.