Market conditions in the North I-680 and Highway 4 corridors continued
Market conditions in the North I-680 and Highway 4 corridors continued to improve during the second quarter of 2010. Total vacancy for the market fell 0.2 percentage points to 14.2 percent. Warehouse vacancies dropped 2.1 percentage points to 24.8 percent, while registering 60,750 square feet (SF) of positive net absorption. This is the third quarter in a row showing an increase in total net absorption for warehouse space. R&D vacancies decreased 2.0 percentage points to 18.7 percent with 20,217 SF of positive net absorption. Light industrial space remained relatively flat for the quarter, while total vacancy increased 0.4 percentage points to 11.6 percent with 17,350 SF of negative net absorption. Average asking rents for light industrial space dropped $0.05 per square foot (PSF) to $0.86 PSF. Industrial properties continue to have the lowest average vacancies of any commercial property type throughout the North I-680 and Highway 4 corridors.

 Click here for the full report.

Unemployment Numbers Continue to Drive Vacancy Rates
Market conditions in the North I-680 Office Market deteriorated again during the second quarter of 2010, reflecting the overall tone of the dragging economy. The trend for total vacancy has increased eight consecutive quarters dating back to the second quarter of 2008 when it closed at a low of 12.4 percent. Current total market vacancy exceeds 20 percent. Office demand is driven by jobs and until the unemployment rate declines vacancies will continue to remain at historical highs. Preliminary labor statistics for Contra Costa County compiled by the California Employment Development Department show unemployment at 11.3 percent for the month of June, a 4.2 percent increase in unemployment over May. Total asking rents for the North I-680 Corridor saw their steepest decline since the first quarter of 2009, dipping 6.1 percent over the first quarter of 2010 to $2.00 per square foot (PSF ) on a full service basis.

 Click here for the full report.

Economy Continues to Hamper East-Bay Multi-Family Sector
After going through a year that can best be described as brutal, the multi-family market is seen by many as the sector that will be the first to emerge from the recession. The East Bay multi-family market remains bogged down by negative economic conditions in the broader economy. As of February, the unemployment rate in the East Bay was 11.6%, a 2.2 percentage point rise over the past twelve months, and a 6.5 percentage point increase over the past twenty four months. During the past year, 1 in 261 single family homes in Alameda County entered foreclosure, and in Contra Costa County the rate was 1 in 146.

 Click here for the full report.

Retail Opportunities for Some in Spite of Recession
After a less than stellar 2009, retail real estate is looking toward 2010 in hopes of stability. The first quarter of 2010 did bring adverse market condition for most, but some are finding opportunity in this recession. Discount retailers continued to flourish in the new "era of frugality." East Bay based apparel retailer Ross Dress for Less, had 20% sales growth last year and has plans to expand by another 5% in 2010. Ross' competitor TJX (the parent company of TJ Maxx and Marshalls) also has an eye toward expansion. TJX is planning to open sixty new stores in the U.S. Target has plans to add ten net new stores nationally during 2010. However, at the same time Target will be reinvesting $1 billion into existing stores and developing a new format for urban markets.

 Click here for the full report.