Resurgence in Investment and Leasing Activity

August 30, 2012, Fairfield, CA – Colliers International’s Fairfield office, which covers Solano, Napa and parts of Contra Costa Counties, released market reports this week which suggest the North Bay market is in a current state of resurgence, based on strong leasing and sales activity.

In the second quarter of 2012 the industrial vacancy rate for Solano and Napa counties declined to 13.4 percent, down 0.5 percentage points from the prior quarter and 1.1 for the year. Not only was leasing activity strong in the quarter, sales activity was even stronger. There were three sales of 200,000 square feet or greater in just the second quarter alone. This is a sharp increase in activity considering there had not been three 200,000 square foot building sales since 2007.

On the other hand, the office market still needs jobs to recover. The office vacancy rate in the second quarter of 2012 in Solano and Napa counties rose 1.0 percentage point from the prior quarter to 25.4 percent.

The larger transactions summarized above and in the enclosed Colliers research reports indicate that confidence is returning to the market, particularly to the investment market. While it is clear that the recovery is under way, a sustained recovery is still in question.

KC Conway, Colliers International’s Executive Managing Director of Market Analytics, believes modern industrial real estate is an attractive asset class. “A U.S. manufacturing renaissance combined with growing agriculture and energy exports fuels demand for industrial real estate. Proximity to intermodal infrastructure, ports and resources influence investor demand for industrial space.”

The Colliers Fairfield office’s second quarter 2012 market reports detailing additional market insight and information for both industrial and office properties are enclosed.

About Colliers International
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.

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