FAIRFIELD — The industrial market in Solano and Napa counties cooled off in the second quarter of the year, yet remained healthy, even as the office market continued to face challenges.
That’s the assessment in the latest financial report by Colliers International’s Fairfield office. The second quarter ran from April through June.
Vacancy rates for industrial uses in the two counties rose from 7.2 percent to 7.9 percent. That came after nine consecutive quarters of declines.
The industrial vacancy rate in Fairfield remained at 4.2 percent, the report said. But the city did see some market activity.
Pride Industries and Cortica Benicia both leased 7,347-square-foot spaces at 2479 Courage Drive in the Solano Business Park. In the region’s largest sale, Victor Ferrante bought 8,600 square feet at 1058 Horizon Drive for $696,800, or $81 per square foot.
Vacaville saw its industrial vacancy rate decline, from 6 percent to 4.7 percent. WECO Industries leased 13,000 square feet at 4971 Allison Parkway, the report said.
Even though the two-county industrial vacancy rate rose to 7.9 percent, it remains about half the recent peak of 15 percent in early 2011, the report said.
“Given the strength of the wine industry driving both counties and Solano County’s location as a regional transportation hub, the outlook is positive for both the short and long term in the region,” the report said.
Colliers described the local office market as “challenged.” The vacancy rate for the two counties remained just about the same at 20 percent.
Fairfield’s rate dipped from 24.8 percent to 24.5 percent, with no significant lease transactions, the report said. The most noteworthy Fairfield story was The Wiseman Co. launching the first office construction project in several years, a 30,000-square-foot building at 2470 Hilborn Road, it said.
The office market is recovering nationally and in other parts of the Bay Area, the report said. Solano and Napa counties are lagging because they are more agricultural and more of a warehousing and transportation hub. In addition, companies are making more efficient use of office space.
Eventually, tenants should spill over from other parts of the Bay Area where rents have skyrocketed, Colliers International predicted.
“Solano County in particular remains affordable for both companies and employees to relocate,” it said.
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