Fairfield, CA – Colliers International’s Fairfield office, which covers Solano, Napa and parts of Contra Costa counties, recently released market reports that indicate the supply of available warehouse space is rapidly diminishing.
The industrial vacancy rate for Napa and Solano counties continued to decline in the fourth quarter of 2012. Now at 11.3 percent, down 1.1 percentage points from the previous quarter, and 3.0 percentage points for the year. In addition to the impressive leasing activity, sales activity continued its steady march forward as well. There were also six building sales of 40,000 square feet or greater in the quarter.
Continued prosperity in the wine industry is clearly the leading cause for the very limited availability of warehouse space in Napa County. According to Nielsen’s research presented at the Wine Market Council’s meeting in January 2013, American consumers purchased 4.6 percent more wine in dollar sales and 1.7 percent more wine in volume in 2012 than they did 2011. And this trend is expected to continue into 2013 as the economy continues its gradual recovery.
The rapidly diminishing supply of available space, particularly in Napa County, has in turn heightened the demand for land and spurred the planned development of new buildings, something rarely seen since the Great Recession began roughly five years ago. Investors have begun to return to the market, albeit with cautious optimism. Industrial properties are expected to be a top investor target in 2013.
The news is quite different in the office market in Solano and Napa counties, as they continued to show no clear direction in the fourth quarter of 2012. Investment activity in the office market has ground to a halt as there were no significant sales in the fourth quarter of 2012.
The Colliers Fairfield office’s fourth 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.