Real Estate

According to Cushman & Wakefield, Kern County’s industrial market held up remarkably well throughout 2015. Oil started its slide in July 2014, and the Bakersfield MSA entered 2015 with a 6.9% vacancy rate. The oil situation did reduce demand—some—but it did not kill demand. Indeed, the year was marked more by a lack of supply, particularly of finished industrial lots, and rents and sale prices continued an upward trend. Closing out the year, the region ended at a 3.7% vacancy rate.

The market absorbed 1.47 million sf in 2015, down significantly from the 2.5 million sf in 2014. This was more because of lack of supply than lack of demand, a claim that is supported by the increased number of build-to-suits.

What’s coming?

The airport area is becoming ground-zero for industrial growth in the metro area, while the big logistics users will go to either Paramount Logistics Park or Tejon Ranch Commerce Center. The corridor between Hwy 99 and Airport Drive has two 100+ acre developments under way—the 138-acre Landings Logistics Center across the street from our airport, and an as-yet unnamed 114-acre development next door to the airport. Another 117-acre site is also available for sale.

Kern County Real EstateBrokerage houses that specialize in business

 


Industrial Market

Q4 2013 Q4 2014 Q4 2015 Y-o-Y Change 12 Month Forecast
Vacancy 2.8% 6.9% 3.7% -3.2%pp
Rents $0.49 $0.54 $0.71 +$0.17

 

Overall Rental VS. Vacancy Rates (2006 – 2015)
Buildings and Vacancy

 

Overall Occupier Activity (2008 – 2015)
Occupier Activity


Office Market

 

Q4 2014

Q4 2015

Y-O-Y Change

12 Month Forecast

Overall Vacancy(Office)

7.08%

8.34%

1.26%

*Average Asking Rent spsf/month (Office)

$1.53

$1.57

1.03%

Overall Vacancy(Medical)

8.18%

10%

1.82%

*Average Asking Rent spsf/month (Medical)

$1.78

$1.78

0%

*All average asking rents have been broken down into a Modified Gross basis whereas Tenant pays for their own utilities & janitorial services.

Source: Cushman & Wakefield, Paccom Realty Advisors, Inc.

For a more detailed report, please click the following:  2016 Office Market Update


 Central Valley Real Estate Benchmark

Paramount-Logistics-Park-Ariel-Shot

California’s Central Valley continued to experience a resurgence of growth in its commercial and industrial sectors in 2015 with the upward trend expected to continue throughout 2016.

Industrial Base and Vacancy 2016

Area

Base

Vacancy (sf)

Vacancy Rate

Kern

36,685,264

1,472,399

3.7%

Fresno

70,250,104

3,496,443

4.9%

Kings

6,866,222

2,154,000

31%

Madera

6,945,394

22,794

.03%

Merced

19,721,958

902,560

8%

San Joaquin

109,111,000

5,237,000

4.8%

Tulare

30,400,000

2,991,038

9.8%

 

Industrial Prices 2016

Area

Price/sf

Sales Price/sf

$28-85/sf*

Kern

$.27 -.37 NNN

Fresno

$.20 -.41 NNN

Kings

$.12-.16 NNN

Madera

$.38-.45 NNN

Merced

$.16-.34 NNN

San Joaquin

$.25-.32 NNN

Tulare

$.25-.30 NNN

Source: Local Realtors & California Central Valley EDC *depends on amenities