Lack of industrial inventory starting to have an impact on rents in Sonoma County.

Rents for industrial/warehouse buildings have increased to $.85-$.90/sf gross on a number of properties in Santa Rosa. This is 15%-20% increase from leases that were done 12-18 months ago. Currently, there are over 750,000sf of industrial requirements circling build-to-suit opportunities due to the lack of inventory of properties 20,000sf and above. Most of those building that are available in this size range are obsolete for many users without the required clear heights, dock loading doors and night air cooling systems. Most requirements are currently related to food, wine and beer manufacturing. Build-to-suit rents are likely to be in the $.85-$1.00psf range NNN depending on quality and location.