STOCKTON, Calif. — More than 561,000 square feet of office space in California's Central Valley is sitting unused, according to new data released by leading real estate and investment firm CBRE.
The report, released this month, focuses on Lodi, Stockton, Manteca, Tracy and Modesto's office real estate market.
As a whole, the valley's vacancy rate was up 5.9% at the end of the second quarter. The new vacancy rate represents an increase from 5.7% to 5.9% quarter-over-quarter.
Despite the increase in office vacancy rate, CBRE says the valley's market exhibited greater stability than the Bay Area or Sacramento markets.
"Looking ahead, the Central Valley office market will continue to experience challenges surrounding the lack of premier space and new construction in the region," the report said. "This trend should continue while construction cost and lending requirements remain cost prohibitive based on proforma rent expectations."
Of all the valley regions that CBRE studied, North Central Stockton had the highest total vacancy rate at 11.1%. Lodi had the lowest total vacancy rate at 4.3%, followed by Manteca with a total vacancy rate of 4.5%.
Technology and government companies were the most active in the valley's office real estate market during its second quarter.
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