FAIRFIELD — Industrial vacancy rates in Solano and Napa counties continued to decline in the third quarter of 2012.
The rate fell to 12.4 percent, down 1 percent from the prior quarter and 2 percent from a year ago, according to Colliers International’s Fairfield office. This marked the fourth consecutive quarter of declines.
In the quarter’s largest transaction, US REIF Vacaville California bought a four-building, 681,500-square-foot food processing and warehouse facility from GEBP Westport Trust. The facility, at 500 Crocker Drive in Vacaville, is used by Mariani Packing Co., a Colliers International report said.
Fairfield saw its industrial vacancy rate drop from 9.1 percent to 8.4 percent. Jump Highway, a place where people can go to jump on trampolines, leased 21,000 square feet at 455 Lopes Road. Bright Naissance Forever leased 25,000 square feet at 1891 Woolner Ave., the report said.
Colliers International attributed the Solano County decline in the industrial vacancy rate to gradual improvements in the warehouse and manufacturing sectors.
More jobs are returning to the United States from Asia as the wage gap shrinks and transportation costs increase. Solano County is poised to take advantage of the economic recovery because of its water supplies, availability of land for development and location between San Francisco and Sacramento, the report said.
News was less positive for the office market, where the vacancy rate for Solano and Napa counties decreased from 25.8 percent to 25.3 percent from the second to third quarters. Fairfield saw its rate increase 1 percent to 26.7 percent.
“A myriad of obstacles to any significant declines from the current historically high vacancy rates exist,” the Colliers International report said.
Among them are the high unemployment rate and the shift to companies using less office space because of mobile technology and more flexible designs, the report said. Square footage per office worker has fallen from 225 square feet per worker to 176 square feet today. Many companies could have 100 square feet per worker within five years, the report said.
In Fairfield, the largest office space lease of the quarter was Your Body Works at 4,978 square feet at 324 Campus Lane in Fairfield Corporate Commons.
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