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 September 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., slightly up from last month but holding flat, with approximately 147,000 sq. ft. under construction. This is way down from last month’s 17.2 million sq. ft. of office space. The 12-month net absorption rate is also down, at 56,000 square feet. The vacancy rate is at 7.8 percent and expected to hold there.
For the industrial market, 106 million sq. ft. of space is in the inventory, with more on the way, and the space under construction is also rising, at 2.1 million sq. ft., over a million more than last month. The 12-month net absorption is at 206,000 sq. ft., and the vacancy rate is at 3.9% and declining.
There are 65.6 million sq. ft. of retail space available, the same as last month, and the sq. ft. under construction also hasn’t changed at 72,000 sq. ft. but on a downward trend. The 12-month net absorption rate is way down at 22,000 square feet. Vacancy rates are down slightly from last month, at 3.5%, but expected to rise.
The multifamily market is up to 60,000 units available in the inventory. Construction is on the downswing here, at 542 units. The 12-month net absorption rate averages just 63 units across the North Bay area and is on the rise, with a rising vacancy rate of 5.2%.
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 office, industrial, retail, or multifamily properties, we can help.
Data source: CoStar Analytics