With a fractional increase from 7.3 percent to 7.4 percent, the industrial market vacancy rate in Solano and Napa counties was essentially flat for the first quarter of 2014. This represents a significant change from the year 2013, when the vacancy rate declined by 3.8 percentage points for the year, the largest decline in several years. Despite the slight increase in the vacancy rate, net absorption was positive 299,858 square feet in the first quarter of 2014. The completion of 380,281 square feet of new construction in the first quarter is the explanation for the vacancy rate increasing slightly amidst positive net absorption. Average asking rates increased in the first quarter by $0.01 to $0.51 per square foot per month (psf/mo) Triple Net (NNN).
Vacancy Flattens In The First Quarter