East Bay / Tri-Valley INDUSTRIAL & OFFICE MARKET REPORT Tri-Valley Industrial Inventory: 30,958,710 Tri-Valley Industrial Availability: 2,323,084 Tri-Valley Industrial Net Absorption: -252,389 Tri-Valley Availability Rate: 7.50% Tri-Valley Office Inventory: 23,883,437 Tri-Valley Office Availability: 2,640,686 Tri-Valley Office Absorption: -291,711 Tri-Valley Availability Rate: 11.06% Availability: Square footage that is marketed for lease which is available within 90 days. This also includes sublease space. Industrial Buildings are defined as buildings with a clearance of less than 22’ with drive in truck doors; some may have dock doors. These buildings can be used by a wide variety of users. Parking is usually limited. This is the most prevalent type of industrial building. Multi-tenant/incubator is defined as an industrial building that divides into units of less than 5,000± SF, with drive in truck doors and a ceiling clearance of less than 18’. These buildings are ideal for expanding small businesses. Warehouse and distribution buildings have a ceiling clearance of 22’ or greater, dock high doors, limited parking and an adequate apron for truck deliveries. Office/Flex/R&D buildings are characterized by having a parking ratio of at least 3/1,000± SF of building. They usually have a lower clearance height and can be one or two stories. The parking enables these buildings to be flexible in the type of user they can accommodate. Any user from pure office to research & development can take advantage of the flexibility of this type of building. Lee & Associates maintains an up-to-date database of all available properties and sold/leased properties. Visit us at www.lee-associates.com 2014 Ends & 2015 Begins The year ended similar to how it started. Long story short the market improved each quarter. Vacancies continued to drop and values showed a steady increase. Of course, there were some exceptions to the rule and we anticipate that being the case in 2015. Both interest rates and cap rates remained at historic lows throughout the year. While the market has improved greatly over the past several years, for the most part activity has been “steady” and, in some cases, “spotty”. Some spaces will sit vacant for several months while others will receive multiple offers nearly immediately upon availability. Forecast 2015 – It is very hard to know what impact the low cost of oil will bring and how long it might last, but our expectation is more of the same. Fewer options to consider, higher lease rates, higher sale values, and steady demand. In addition, we anticipate the construction of new spec development to occur – something we have not seen in many years. -Mike Furay MARKET SNAPSHOT KEY TERMS & DEFINITIONS 4 th Quarter 2014
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Quarter 2014 INDUSTRIAL & OFFICE MARKET REPORT...INDUSTRIAL MARKET STATISTICS - 4th QUARTER 2014 MARKET ABSORPTION Buildings Total SF Direct SF Sublease SF Available SF Direct Total
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Availability: Square footage that is marketed for lease which is available within 90 days. This also includes sublease space.
Industrial Buildings are defined as buildings with a clearance of less than 22’ with drive in truck doors; some may have dock doors. These buildings can be used by a wide variety of users. Parking is usually limited. This is the most prevalent type of industrial building.
Multi-tenant/incubator is defined as an industrial building that divides into units of less than 5,000± SF, with drive in truck doors and a ceiling clearance of less than 18’. These buildings are ideal for expanding small businesses.
Warehouse and distribution buildings have a ceiling clearance of 22’ or greater, dock high doors, limited parking and an adequate apron for truck deliveries.
Office/Flex/R&D buildings are characterized by having a parking ratio of at least 3/1,000± SF of building. They usually have a lower clearance height and can be one or two stories. The parking enables these buildings to be flexible in the type of user they can accommodate. Any user from pure office to research & development can take advantage of the flexibility of this type of building.
Lee & Associates maintains an up-to-date database of all available properties and sold/leased properties.
Visit us at www.lee-associates.com
2014 Ends & 2015 BeginsThe year ended similar to how it started. Long story short the market improved each quarter. Vacancies continued to drop and values showed a steady increase. Of course, there were some exceptions to the rule and we anticipate that being the case in 2015.
Both interest rates and cap rates remained at historic lows throughout the year.
While the market has improved greatly over the past several years, for the most part activity has been “steady” and, in some cases, “spotty”. Some spaces will sit vacant for several months while others will receive multiple offers nearly immediately upon availability.
Forecast 2015 – It is very hard to know what impact the low cost of oil will bring and how long it might last, but our expectation is more of the same. Fewer options to consider, higher lease rates, higher sale values, and steady demand. In addition, we anticipate the construction of new spec development to occur – something we have not seen in many years.
MARKET TOTAL 470 23,883,437 2,347,662 293,024 2,640,686 9.83% 11.06% -291,711
INVENTORY AVAILABILITY AVAILABILITY RATE
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Lee & Associates East Bay / Tri-Valley - Market Report
QUARTER IN REVIEW4 th Quarter 2014
DUBLIN INDUSTRIAL AVAILABILITY
PLEASANTON INDUSTRIAL AVAILABILITY
LIVERMORE INDUSTRIAL AVAILABILITY
The Dublin Industrial Market has slipped from last quarter. The availability rate increased from 5.89% to 6.05%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Sean Offers
The Pleasanton Industrial Market has slipped from last quarter. The availability rate increased from 4.30% to 4.71%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Mike Furay
The Livermore Industrial Market has slipped from last quarter. The availability rate increased from 8.20% to 8.92%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Tony Ferreri
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
INDUSTRIAL MULTI TENANT/INCUBATOR FLEX/R&D
3rd Q '14 4th Q '14
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
INDUSTRIAL MULTITENANT/INCUBATOR
FLEX/R&D WAREHOUSE/DIST
3rd Q '14 4th Q '14
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
0
250,000
500,000
750,000
1,000,000
1,250,000
INDUSTRIAL MULTI TENANT/INCUBATOR FLEX/R&D WAREHOUSE/DIST
3rd Q '14 4th Q '14
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Lee & Associates East Bay / Tri-Valley - Market Report
QUARTER IN REVIEW4 th Quarter 2014
AVAILABILITY
ABSORPTION
LEASE RATE
AVAILABILITY
ABSORPTION
LEASE RATE
AVAILABILITY
ABSORPTION
LEASE RATE
DANVILLE OFFICE AVAILABILITY
SAN RAMON OFFICE AVAILABILITY
DUBLIN OFFICE AVAILABILITY
The Danville Office Market has improved from last quarter. The availability rate increased from 7.58% to 7.51%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Simon Vogt
The San Ramon Office Market has slipped from last quarter. The availability rate increased from 4.18% to 4.75%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Simon Vogt
The Dublin Office Market has improved from last quarter. The availability rate decreased from 20.42% to 18.38% There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Mark Rinkle
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Class A Class B
3rd Q '14 4th Q '14
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
Class A Class B
3rd Q '14 4th Q '14
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Class A Class B
3rd Q '14 4th Q '14
4
Lee & Associates East Bay / Tri-Valley - Market Report
QUARTER IN REVIEW4 th Quarter 2014
AVAILABILITY
ABSORPTION
LEASE RATE
AVAILABILITY
ABSORPTION
LEASE RATE
AVAILABILITY
ABSORPTION
LEASE RATE
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
PLEASANTON OFFICE AVAILABILITY
LIVERMORE OFFICE AVAILABILITY
The Pleasanton Office Market has improved from last quarter. The availability rate decreased slightly from 17.13% to 17.12%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Aron Hoenninger
The Livermore Office Market has improved from last quarter. The availability rate decreased from 13.14% to 12.71%. There was negative absorption from last quarter. The lease rates are trending upward. The trend for this area appears to be improving and we continue to see positive signs that this will continue. Prepared by Simon Vogt
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Class A Class B
3rd Q '14 4th Q '14
5
Lee & Associates East Bay / Tri-Valley - Market Report
QUARTER IN REVIEW4 th Quarter 2014
AVAILABILITY
ABSORPTION
LEASE RATE
AVAILABILITY
ABSORPTION
LEASE RATE
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
3rd QUARTER ‘14 VS. 4th QUARTER ‘14 AVAILABILITIES
0
25,000
50,000
75,000
100,000
125,000
150,000
175,000
200,000
Class A Class B
3rd Q '14 4th Q '14
TRI-VALLEY AVAILABILITY HISTORY
TRI-VALLEY ABSORPTION HISTORY
AVAILABILITY
CONDO AVAILABILITY
TRI-VALLEY OFFICE AVAILABLE HISTORYTRI-VALLEY INDUSTRIAL AVAILABLE HISTORY
TRI-VALLEY OFFICE ABSORPTION HISTORYTRI-VALLEY INDUSTRIAL ABSORPTION HISTORY
ABOUT LEE & ASSOCIATESLee & Associates, founded in 1979, is one of the largest regional commercial real estate providers in the United States.
Since 1979, our seasoned, motivated shareholders and professionals have been offering comprehensive quality service nationally and locally in a pro-active manner. We develop customized solutions for all of your real estates needs through our market-to-market knowledge in all property types. Our unique business model and extensive experience has helped us become one of the largest commercial real estate providers in the United States.
5890 Stoneridge Drive, Suite 210, Pleasanton, CA 94588www.lee-associates.com/
Established in 1979 in Irvine, California, Lee & Associates has 51 nationwide offices that are individually owned by the shareholders of that office, thus encouraging an entrepreneurial spirit and allowing more freedom and creativity to make real estate transactions work
NATIONAL ORGANIZATION, LOCAL OWNERSHIP
Over the past 35 years, there has been an explosive growth of Lee & Associates offices throughout the country, making it one of the largest and fastest growing commercial real estate organizations in the United States.
EXPLOSIVE GROWTH
2014 - Denver, CO2014 - Cleveland, OH2013 - Long Island-Queens, NY2013 - Chesapeake Region , MD2013 - Charleston-Dwntn, SC2012 - Edison, NJ2012 - Orlando, FL2012 - Charleston, SC2011 - Fort Myers, FL2011 - Kansas City, KS
2011 - Manhattan, NY2011 - Greenville, SC2010 - Atlanta, GA2010 - Greenwood, IN2010 - Indianapolis, IN2009 - Long Beach, CA2009 - Elmwood Park, NJ2008 - Boise, ID2008 - Investment Services Group, LA, CA2008 - Palm Desert, CA
2008 - Santa Barbara, CA2006 - Antelope Valley, CA2006 - Dallas, TX2006 - Madison, WI2006 - Oakland, CA2006 - Reno, NV2006 - San Diego - UTC, CA2006 - Ventura, CA2006 - San Luis Obispo, CA2005 - Southfield, MI
2005 - Los Olivos, CA2004 - Calabasas, CA2004 - St. Louis, MO2002 - Chicago, IL2001 - Victorville, CA1999 - Temecula Valley, CA1996 - Central LA, CA1994 - Sherman Oaks, CA1994 - West LA, CA1993 - Pleasanton, CA
1993 - Stockton, CA1992 - Las Vegas, NV1991 - Phoenix, AZ1990 - Carlsbad, CA1990 - Industry, CA1989 - Los Angeles, CA1989 - Riverside, CA1987 - Ontario, CA1984 - Newport Beach, CA1983 - Orange, CA