Vacancies, Rental Rates and the Economy
Commercial and industrial real estate can reflect the economic health of a region. For example, we can see a steady rise in Industrial Real Estate rent per square footage around Q3 of 2020 – roughly when the realities of the COVID-19 pandemic began to set in. When the nation began to open back up, rental rates began to level out. (Source: UOP CBPR). That is why it's important to analyze trends in commercial and industrial real estate as we discuss the regional economy. This is a key indicator in knowing the economic 'pulse' of an area. The graphs below examine real estate trends across San Joaquin County.
Vacancy rates continue to fluctuate as they have since before the start of the COVID-19 pandemic, reaching as low as 6.9% in Q1 2020.This reflects the commercial market’s continued economic recovery. (Source: UOP CBPR).