Silicon Valley’s industrial real estate market continues to perform well posting a sixth consecutive quarter of positive net absorption as demand continues to rise while supply is tightening in major markets.

For Q4 the area posted a positive net absorption of roughly 515,000 square feet with Fremont and Newark dominating overall leasing activity. With this much space being leased, asking rates are now averaging $0.60 NNN and will likely grow to $0.62-$0.65 by the end of Q1 2015 as leasing will continue to pick up given the overall macroeconomic factors that play into area demand.

The only sector where the market declined was property sales as only two sales of buildings larger than 100,000 square feet were completed in Q4 2014. However this isn’t a major indicator that the market will begin to stall as building sales are traditionally slow at the end of the year.

For more information on available warehouse space in the Silicon Valley area, contact us today at (415) 323-6177.

Photo credit: Satish J