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Market Pulse: North Bay, November 2019

It’s been said that “numbers never lie.” So while we may feel like our day-to-day work keeps our finger on the pulse of the Northern California commercial real estate market, it’s always good to look at the numbers and see what’s real.

So every month we scour the data in each of the regions NAI Northern California covers and determine the health of our primary markets in office, retail, industrial and multifamily properties. We check four indicators in each asset class:

  1. Current Inventory
  2. Under Construction
  3. 12-Month Net Absorption
  4. Vacancy Rate

Here below is our November 2019 report for the North Bay, which we’ve also compiled into an eye-friendly infographic. Follow our blog, social media feeds, or subscribe to our newsletter for monthly updates to this data, and for our companion reports on San Francisco, the East Bay, and the South Bay.

The Data

Office Properties: 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, the same as last month but projected to decline. The 12-month net absorption rate continues its erratic pattern, at -7,300 sq. ft. and expected to go back on the decline. The vacancy rate is at 8.2 percent, slightly down from October and expected to hold there.

Industrial Properties: For the industrial market, 105 million sq. ft. of space is in the inventory, slightly up from last month but expected to increase. The space under construction is the same as October, at 2.3 million sq. ft. of industrial space and projected to rise. The 12-month net absorption is way down, at 77,000 sq. ft. compared to October’s 222,000 sq. ft., and the vacancy rate is at 4.0% and declining.

Retail Properties: There are 65.7 million sq. ft. of retail space available, slightly less than last month and projected to increase. The sq. ft. under construction is at 105,000 sq. ft., up from October’s 104,000 sq. ft., but on a downward trend. The 12-month net absorption rate continues to plunge, now negative 87,000 square feet. Vacancy rates are up slightly from last month and the month before, at 3.8%, and are expected to continue to rise.

Multifamily Properties: 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 September and October). The 12-month net absorption rate averages just 26 units across the North Bay area and is expected to rise, with a steadily rising vacancy rate of 5.6 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

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

Market Pulse: North Bay, September 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 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 officeindustrialretail, or multifamily properties, we can help.

Data source: CoStar Analytics

Tenants start grabbing space in one of the East Bay’s only new office towers

One of the Bay Area’s largest life science landlords, Wareham Development, is now more than a third leased up in its latest project, the 265,000-square-foot EmeryStation West in Emeryville.

The San Rafael-based developer recently completed the building after starting construction back in 2016 with no tenants in hand and now has commitments for 93,000 square feet with Profusa Inc. taking 18,000 square feet and Dynavax Technologies Inc. taking 75,000 square feet.

“We have built the project to the highest-quality research and office building standards and are pleased the market recognizes that,” said Geoffrey Sears, a partner at Wareham, in a statement.

The building, designed by Perkins + Will, contains seven stories of office and lab space above two levels for transit and parking. DPR Construction served as the general contractor.

The building is part of Wareham’s 2 million-square-foot EmeryStation research and technology campus and is the latest addition to the company’s broader 4.5 million-square-foot portfolio in the Bay Area.

Wareham, led by CEO Rich Robbins, has specialized in developing biotech and life science buildings in Emeryville, Berkeley, Richmond and Palo Alto. Before EmeryStation West, the last new office building in Emeryville was Wareham’s 99,000-square-foot EmeryStation Greenway in 2012. That property was leased up by Stanford Health Care.

Read more on San Francisco Business Times