East Bay, CA Industrial Market Report
Walnut Creek/Lamorinda
Market Overview
Over the past three years, there have been six sales in the Walnut Creek/Lamorinda industrial submarket totaling approximately $24.7 million. Rents have cumulatively increased by 11.3% over the same period. No new industrial space has been delivered in the past three years.
Flex space is the largest subtype in this submarket, accounting for 550,000 square feet, followed by 200,000 square feet of logistics space and 110,000 square feet of specialized space.
Market Performance
Over the past 12 months, vacancy in the Walnut Creek/Lamorinda industrial submarket is 4.1%, showing a significant decrease of 7.3%. 63,300 square feet has been absorbed in the past 12 months, and no new space has been delivered. Rents are approximately $22.35 per square foot, reflecting a 1.2% increase from the previous year. There is currently nothing under construction. There have been five sales over the past year, totaling $24.7 million in sales volume.
The current 12-month sales volume for Chicago is $3.9 billion. While there was a noticeable decline in multifamily sales volume in Chicago during the first three quarters of 2023, it was not as drastic as in other U.S. markets. In fact, among the 27 largest markets based on inventory, Chicago experienced the smallest YOY drop in multifamily sales volume, at 38%.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 4.1%
- Rent Growth: 1.2%
- Delivered SF: 0
- Net Absorption SF: 63.3K
- Sales Volume: $24.7M
San Ramon/Danville
Market Overview
Total availability in the San Ramon/Danville industrial submarket, including sublease space, is 11.2% of all inventory. Over the past three years, rents have cumulatively increased by 12.7%. This submarket is relatively expensive compared to the East Bay average of $16.30 per square foot. Over the past three years, there have been seven sales totaling approximately $26.7 million.
Logistics space is the dominant subtype in this submarket, accounting for 710,000 square feet, followed by 620,000 square feet of flex space and 190,000 square feet of specialized space.
Market Performance
Vacancy in the San Ramon/Danville industrial submarket is 10.6%, showing a decrease of 2.3% over the past 12 months. 35,400 square feet has been absorbed over the past 12 months, and no new space has been delivered. Rents are around $21.95 per square foot, reflecting a 2.6% increase from the previous year. There have been three sales over the past year, totaling $9.8 million.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 10.6%
- Rent Growth: 2.6%
- Delivered SF: 0
- Net Absorption SF: 35.4K
- Sales Volume: $9.8M
Concord/Pleasant Hill
Market Overview
Over the past three years, rents in the Concord/Pleasant Hill industrial submarket have cumulatively increased by 10.8%. This submarket is relatively expensive compared to the East Bay average of $16.30 per square foot. Total inventory has expanded by 34,000 square feet in the past three years. During the same period, there have been 39 sales totaling approximately $48.4 million. During this time, the market cap rate for Concord/Pleasant Hill has increased to 5.9%, higher than its trailing three-year average of 5.3%.
Logistics space is the dominant subtype in this submarket, comprising 6.2 million square feet, followed by 2.0 million square feet of flex space and 1.1 million square feet of specialized space.
Market Performance
Vacancy in the Concord/Pleasant Hill industrial submarket is 4.0%, marking an increase of 1.8% over the past 12 months. In comparison, the broader East Bay market experienced a 1.3% increase in vacancy. There has been negative absorption of 140,400 square feet in the past 12 months, and 28,700 square feet has been delivered. Rents are around $19.71 per square foot, reflecting a marginal 0.3% increase from the previous year. About 98,430 square feet is under construction, representing a 1.1% expansion of inventory. There have been nine sales over the past year, totaling $11.2 million.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 4.0%
- Rent Growth: 0.3%
- Delivered SF: 28.7K
- Net Absorption SF: -144K
- Sales Volume: $10.9M
Antioch/Pittsburg
Market Overview
Rents in the Antioch/Pittsburg industrial submarket have increased by 9.8% over the past three years. This submarket is relatively affordable compared to the East Bay average of $16.30 per square foot. There have also been 54 sales over the past three years, totaling approximately $290 million. The market cap rate for Antioch/Pittsburg is 5.0%, moderately above its trailing three-year average of 4.7%.
Logistics space is the dominant subtype in this submarket, comprising 8.3 million square feet, followed by 5.5 million square feet of specialized space and 960,000 square feet of flex space.
Market Performance
Vacancy in the Antioch/Pittsburg industrial submarket is 4.8%, marking a decrease of 2.8% over the past 12 months. During this period, 938,000 square feet has been delivered, and 1.3 million square feet has been absorbed. Rents are around $11.82 per square foot, reflecting a marginal 0.1% decrease from the previous year. About 30,000 square feet is under construction, representing a minor 0.2% expansion of inventory. There have been 14 sales over the past year. Sales have averaged $153 per square foot, and the estimated value for the market as a whole is $249 per square foot.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 4.8%
- Rent Growth: -0.1%
- Delivered SF: 938K
- Net Absorption SF: 1.3M
- Sales Volume: $19.1M
Livermore
Market Overview
Rents in the Livermore industrial submarket have seen a notable increase of 9.8% over the past three years. The submarket is slightly more affordable than the East Bay as a whole, where average rents are $16.30 per square foot. Over the past three years, total inventory has expanded by 220,000 square feet, and there have been 65 sales, amounting to approximately $757 million. The market cap rate for Livermore is 5.7%, moderately above its trailing three-year average of 5.2%.
Logistics space is the dominant subtype in this submarket, comprising 15.3 million square feet. This is followed by 4.0 million square feet of flex space and 1.9 million square feet of specialized space.
Market Performance
The vacancy rate in the Livermore industrial submarket is 4.9%, indicating a 2.1% increase over the past 12 months. There has also been negative absorption of 438,000 square feet and 10,000 square feet of space delivered. Rents in the Livermore submarket are around $15.70 per square foot, reflecting a marginal 0.1% decrease from the previous year. Currently, about 12,000 square feet is under construction, representing a minimal 0.1% expansion of inventory. There were 11 sales in the past year, averaging $250 per square foot, totaling $397 million in sales volume.
By The Numbers | Last 12 Months | Source: CoStar Group
- Vacancy Rate: 4.9%
- Rent Growth: -0.1%
- Deliveries SF: 10K
- Net Absorption SF: -438K
- Sales Volume: $397M
