FAIRFIELD — After taking a battering during the Great Recession, the office and industrial market may be starting to come back.
The industrial vacancy rate for Solano and Napa counties was 8.7 percent during the second quarter of the year, a 1.7 percent drop from the previous quarter. The office vacancy rate was 24.2 percent, a 1.3 percent decline, according to the Collier’s International Fairfield office.
“The market continues to tighten and vacancy is dropping,” said Phil Garrett, managing partner of Colliers International’s Fairfield office, in a press release. “Land and development are coming back into focus as a result of the continued lack of inventory.”
The second-quarter office figures may be the “long-awaited first steps toward recovery,” a Colliers International report said. Among the reasons for optimism is falling unemployment rates and Solano County’s relative affordability compared to the rest of the Bay Area, it said.
Fairfield had the largest regional office lease. Solano Community College leased 17,626 square feet at 360 Campus Lane in Fairfield Corporate Commons.
Other leases include 7,995 square feet by Sally Beauty Holdings at 4820 Business Center Drive in Fairfield; 7,791 square feet by Sutter Visiting Nurses Association at 4830 Business Center Drive in Fairfield; and 5,150 square feet by Envoy Mortgage at 411 Davis St. in Vacaville.
The largest office sale in the quarter also took place in Fairfield. ARB Inc. bought 12,830 square feet at 4620 Westamerica Drive. Other office deals in the second quarter included Premier Solano Inc. buying 2,155 square feet at 4705 Mangels Blvd. in Fairfield and Laborers Local 324 buying 1,441 square feet at 4727 Mangels Blvd. in Fairfield.
Fairfield’s industrial vacancy rate remained the lowest among Solano County’s seven cities at 5.9 percent, a 1.2 percent drop. The region’s largest sale was in Fairfield: S&T Real Estate Group LLC bought 2700 Maxwell Way, a 90,000-square-foot manufacturing property, for $6.2 million, according to Colliers.
Meanwhile, Encore Glass signed a lease for a 318,402-square-foot warehouse that Sacramento-based Buzz Oates is building on Cordelia Road in Fairfield.
Vacaville in the second quarter had an industrial vacancy rate of 3.9 percent, a 10.3 percent drop. A big reason was Pacific Cycle leasing 135,750 square feet of warehouse space at 400 Crocker Drive. Also, Dex Products leased 69,000 square feet of warehouse space at 2019 E. Monte Vista Ave., the Colliers International report said.
The industrial space vacancy rate of 8.7 percent in Solano and Napa counties compares to 14.3 percent two years ago.
What are you buzzing about? Reach Barry Eberling at 427-6929 or email@example.com.