FAIRFIELD, CA—Colliers International's Fairfield office, which covers Solano, Napa and parts of Contra Costa counties, released market research reports indicating the industrial market has cooled, yet remains healthy. After nine consecutive quarters of significant vacancy rate declines, vacancy rates increased slightly from 7.2% to 7.6%.

Construction activity is at its highest level in several years as four large warehouse/distribution centers totaling 936,896 square feet are currently under construction. Buzz Oates has begun building two of these warehouses on Cordelia Road in Fairfield for Saxco Glass: one will be 473,136 square feet and the other will be 176,760 square feet. The other two buildings under construction are the two warehouses totaling 287,000 square feet at the Lombard Crossings Industrial Park in American Canyon.

Napa's vacancy rate increased from 6.4% to 7.6% in the second quarter as there was limited leasing activity, combined with two large available properties coming on the market. Despite the uptick in the vacancy rate, inventory remains tight in Napa as the majority of availability consists of smaller light industrial spaces less than 50,000 square feet in size.