Fresno’s residential real estate market has made some big gains in the last year with home prices on the upswing and foreclosures slowing down, but what about commercial real estate?
Local brokers are reporting some positive movement in both the industrial and office markets.
“We are seeing increased activity year-over-year,” said Ethan Smith, vice president, industrial division at Newmark Grubb Pearson Commercial, a Fresno commercial real estate company. “That activity is really across the board from small tenants to large tenants and basically start up businesses to established businesses that are interested in buying.”
The vacancy rate in the industrial sector remained steady at 7.3%, according to the company’s second quarter market report. Last year at this time, the vacancy rate was nearly 10%.
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Office vacancy fell to 13.6% in the second quarter from 14.6% the first quarter and 15.3% in the first half of 2013.
Demand for space is on the rise as existing spots fill up. There has been no new industrial construction in five years, Smith said.
But that will change in the coming months.
Three buildings are planned for the Fancher Creek Business Park in southeast Fresno where Pana-Pacific just broke ground on its new manufacturing site. The North Pointe Business Park in southwest Fresno is getting ready to break ground on several new buildings. And some small buildings are under construction at West Shaw and Brawley avenues.
"The industrial market has picked up and we see better days over the next year or two,” Smith said. “We feel positive about the market.”