A new report from CBRE’s Port Watch Series finds that ongoing supply chain issues continue to hamper the Port of Oakland’s twenty-foot equivalent unit (TEU) container volume, which declined 5.5% in the first half of 2022 on an annual basis. Oakland is now the 9th largest seaport in the U.S. with 1.23 million of TEU volume through June.
Meanwhile, the congestion and climbing costs have driven up demand for port-accessible industrial space as companies seek to shorten wait times and reduce transportation costs. Oakland’s vacancy remained tight in the second quarter of 2022 at 2.3% while industrial leasing continued its upward trajectory with almost 2 million square feet absorbed.
Not surprisingly, industrial supply is unable to keep up with demand, leading to a hefty 17% surge in asking rents quarter over quarter, and with future construction constrained because of limited land availability, CBRE expects rents to keep climbing.
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