Market Pulse: North Bay, October 2019

Welcome to the NAI Northern California’s “Market Pulse” feature. We checked the pulse of the North Bay commercial real estate market to discover the ups and downs of the office, industrial, retail, and multifamily markets. Each market has four dimensions: current inventory, under construction, 12-month net absorption, and vacancy rate.

Check out our October 2019 North Bay Market Pulse infographic. If a dimension is on the rise, the pulse goes above the baseline; if it’s on the decline or negative, the pulse will dip below the baseline.

This month the North Bay office market’s inventory is at 40.8 million sq. ft. and holding flat with approximately 150,000 sq. ft. under construction, slightly up from last month but projected to decline. The 12-month net absorption rate is way down, at -21,000 sq. ft. compared to September’s 56,000 square feet. The vacancy rate is at 8.3 percent and expected to hold there.

For the industrial market, 106 million sq. ft. of space is in the inventory, the same as last month but expected to increase. The space under construction is also rising, at 2.3 million sq. ft. of industrial space. The 12-month net absorption is at 222,000 sq. ft., and the vacancy rate is at 4..1% and declining.

There are 65.8 million sq. ft. of retail space available, slightly more than last month and projected to increase. The sq. ft. under construction is at 94,000 sq. ft., up from September’s 72,000 sq. ft., but on a downward trend. The 12-month net absorption rate continues to plunge, now negative 42,000 square feet. Vacancy rates are up slightly from last month, at 3.6%, and are expected to continue to rise.

The multifamily market is holding steady at 60,000 units available in the inventory, but that number is projected to increase. Construction is expected to slow, at 542 units (the same as last month). The 12-month net absorption rate averages just 28 units across the North Bay area and is expected to rise, with a steadily rising vacancy rate of 5.5 percent.

The North Bay market includes Santa Rosa, Napa, Vallejo, Fairfield, San Rafael, Marin, and more. For more detailed updates or to find out how the North Bay’s submarkets are doing, contact one of our advisors. Whether you’re interested in officeindustrialretail, or multifamily properties, we can help.

Data source: CoStar Analytics