For the second consecutive quarter, the industrial market in Solano and Napa counties experienced significant vacancy decline, according to Colliers International’s Fairfield office (colliers.com/fairfield), which covers Solano, Napa and parts of Contra Costa counties.
The vacancy rate dropped to 8.1 percent in the third quarter, a 1.3 percentage-point drop from the previous quarter and a 3.9 point drop from 2012.
“Solano and Napa counties are both well-positioned to take advantage of this increase in demand for industrial growth,” the report said. “Solano and Napa counties have available clean, economical industrial land available for development. The greater economy’s overall recovery and strength in the wine industry are leading the recent demand, decline in vacancy and boom in construction.”
The lack of available space was even more acute in Napa County, according to Colliers. The entire industrial vacancy rate is only 2.6 percent (all industrial product types). Furthermore, no warehouse space greater than 30,000 square feet is available in Napa County. This diminished supply has contributed to recent interest in warehouse construction in the region with multiple warehouses breaking ground now and in the second quarter of 2014, with more in the planning stages.
In contrast, the office market in Solano and southern Napa counties was unable to continue the positive momentum from earlier in the year, according to Colliers. Vacancy was 22.9 percent in the third quarter, unchanged from mid-year.
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