Bakersfield’s Industrial Building Market, 2013

Wayne Kress HeadshotPosted on February 4, 2014 by 

Bakersfield’s industrial real estate market has enjoyed a resurgence of demand since 2011.  Since 2010, we’ve absorbed an average of 1.7 million sf annually. 2006 was the peak year of the last boom market, a year we absorbed a total of 2.1 million sf.  How’d 2013 do?

Total Market Activity

2011 2012 2013
User Sales 318,236sf 582,247sf 367,587sf
Investor Sales 118,200sf 0sf 545,821sf
Leases 1,032,868sf 1,284,189sf 783,932sf
Total 1,469,304sf 1,866,436sf 1,697,340 sf
Vacancy 6.30% 4.10% 2.80%

We are now in a under-supplied market.  Note that vacancy rate!  That’s the third lowest in the country (behind Houston and Honolulu), but it should probably not include the square footage that is so functionally obsolete, an argument exists not to count it.  Remove that, and our vacancy rate falls to 2.3%.  Ridiculous.

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