Posted on February 4, 2014 by Wayne KressBakersfield’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.
For more detail on each of these categories click here: bakersfieldindustrialrealestate.com/bakersfields-industrial-building-market-2013