According to information released by Northbrook, IL-based Grubb & Ellis Co., the list of vacancy rates by metro area illustrates the diverse forces affecting the U.S. industrial market. Growing container traffic through nearby ports is fueling demand for space in Los Angeles and the Inland Empire, CA. Tight land supplies limit construction in Los Angeles; Long Island, NY; and Oakland, CA. A hangover from the tech downturn has delayed the recovery in California’s Silicon Valley and Raleigh-Durham, NC. A jump-start on new construction has elevated Sacramento’s vacancy, while the stable of mostly local developers limits vacancy in Bakersfield, CA. Overall, vacancy is falling slowly and rents are flat, but rising construction is diverting demand from older space.This information was prepared and provided by Bob Bach, national director, market analysis at Northbrook, IL-based Grubb & Ellis Co. (www.grubb-ellis.com).
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