Industrial space tightens in SJ County

February 28, 2017

 

buzz oates buildingSTOCKTON — San Joaquin County will continue to see industrial prospects migrating east thanks to record-low vacancies in the Bay Area, according to a report from Colliers International.

In fact, businesses looking to lease or buy in Tracy might have trouble finding vacancies.  Net absorption for 2016 in the city was a stunning 3.1 million square feet. Vacancies are at a record low of 0.4 percent.

Tracy has four projects under construction totaling 1.7 million square feet that will be completed this year.

The vacancy rate in San Joaquin County at the close of 2016 was 6 percent, up slightly because 370,000 square feet of sublet space is coming available on Runway

Drive, west of Stockton Metropolitan Airport. More than 3 million square feet of industrial space was built in the county last year.

Anyone looking for industrial space may have to broaden their search to include Lathrop, Manteca and Stockton.

The vacancy rate in Lathrop was 9.8 percent for 2016. The Carpenter Company closed its 417,600 square foot manufacturing facility last year.  Colliers said the city has five

speculative sites under construction totaling 1.7 million square feet.

Lathrop’s I-5 Logistics Center, a 750,000-square-foot logistics facility was built on spec and leased to UPS prior to project completion in mid-2016.

Manteca’s vacancy rate was 4.6 percent thanks to 88,000 square foot manufacturing facility that was just completed and 172,572 square feet that was just delivered back to the market.

Stockton’s availability rate was 7.5 percent thanks to the 370,000 square feet of new sublease space west of the airport.

Five Class A buildings are available that could accommodate users of 100,000 square feet and greater. Just one building is scheduled for delivery in 2017: a 451,611 square

foot speculative logistics facility on Boeing Way in the Stockton Airport Business Center.

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