The summary reports a strong quarter to end 2013, with numerous large lease and sale transactions closing in the final weeks of the year. Additionally, vacancy rates in virtually every market along the I-880 corridor, including Hayward, San Leandro, Union City, Fremont/Newark, Oakland, Berkeley, Emeryville and Richmond, continued to fall as demand for industrial space grew – a trend that is expected to continue into 2014.
“From an owner’s perspective, this report illustrates great news for the highly sought after East Bay market, as the pendulum swings more in their favor on lease renewals and future lease rates,” said Craig Hagglund, managing principal at Lee & Associates’ Oakland office. “On the other side, tenants can expect a bit more difficulty with renewals, with the search for quality space expected to continue to be more competitive, ultimately putting upward pressure on lease rates throughout 2014.”
The report, which was prepared by Lee & Associates Oakland, also illustrated a continued acceleration in owner user sales and owner user sale prices along the I-880 corridor, which, according to Hagglund, are numbers not seen in the East Bay market for over five years. Additionally, investors are continuing to scour the East Bay marketplace in search of industrial properties, resulting in more and more sales across the many submarkets.
For more information on the East Bay industrial market, visit Lee & Associates Oakland web site at: http://resources.lee-associates.com/asp/user/website/officeprofile.asp?officeid=4990.
About Lee & Associates
Celebrating more than 34 years of leadership excellence in commercial real estate, Lee & Associates is the largest broker-owned firm in the nation, with 49 locations across the nation including Arizona, California, Georgia, Idaho, Indiana, Illinois, Kansas, Maryland, Michigan, Missouri, Nevada, New Jersey, Texas and Wisconsin. With a roster of nearly 750 expert brokers, Lee & Associates provides a wide range of specialized commercial real estate services. Additional information is available at www.lee-associates.com.