Central Valley Industrial Figures Q3 2026

The Central Valley industrial market closed Q3 2026 with a base inventory of 140.7 million sq. ft. and steady fundamentals. Vacancy held at 7.4%, 200 bps below a year ago, while availability edged down to 9.4% and the average direct asking rate rose $0.01 to $0.73 NNN. Net absorption was positive for the fourth consecutive quarter at 435,000 sq. ft., bringing year-to-date absorption to 4.12 million sq. ft.

Demand remained steady but slowed from Q2, as new leases were smaller in scale and the quarter's largest deal was a 405,000 sq. ft. renewal. No space delivered this quarter. Of the 7.2 million sq. ft. under construction, 4.1 million sq. ft. of build-to-suit space delivers in Q4 2026, and 3.1 million sq. ft. of speculative space follows in the first half of 2027. The market is expected to remain stable through year-end.