The Q1 2025 Northern California Industrial Market Report provides a comprehensive snapshot of the region’s shifting industrial landscape, covering market fundamentals across Sacramento, Silicon Valley, Oakland, Central Valley, Solano & Napa Counties, the San Francisco Peninsula, Pleasanton/Tri-Valley, and Walnut Creek/I-680. The report outlines critical metrics including vacancy rates, net absorption, asking rents, construction activity, and recent sales and leases, offering a detailed lens into the performance of each submarket.

At the regional level, vacancy rates have increased across nearly all Northern California industrial markets, reaching 6.8% overall, as deliveries have outpaced demand. However, tenant activity has shown signs of a rebound in the early months of 2025, with leasing velocity expected to improve throughout the remainder of the year. Rents have largely stabilized—rising in some pockets while softening in others—highlighting a bifurcation between core locations and outlying markets and modern new construction and older obsolete properties. Construction pipelines remain active but are notably tapering off compared to peak pandemic-era levels, signaling a broader market recalibration.

Regional Overview | Employment & Population

The report provides a regional overview of employment and population figures before diving into detailed statistical comparisons by market, including vacancy rates, rental rates, net absorption, and development activity. Each market section highlights key takeaways, market fundamentals, economic indicators, top lease and sale transactions, and notable projects under construction. The report concludes with emerging trends to watch for the remainder of 2025, along with a national forecast outlining broader industrial market expectations.

Source: Colliers