Property valuation process is performed to find property’s price
While vacancy rates have risen amid an economically led erosion of demand, it cannot be emphasized enough that the I- 80 / I-880 corridor continues to perform quite well. In the coming year, vacancy is expected to inch lower and rents are expected to remain stable or even increase slightly in certain sectors. However, keep an eye on the torrid movement of industrial business into the Central Valley region where costs are relatively low and transportation systems are becoming highly developed.

Despite the strains of the high-tech shakeout and national recession, the East Bay economy has held up well compared to the neighbouring Silicon Valley and San Mateo markets. And its diverse industry base and relatively low job losses will help this market be the first in the region to recover. It is believed that vacancy has already peaked and is projected to slowly decline in 2004. Although sluggish activity is expected, the market should post positive net absorption for the first time in four years.

In the meantime, tenants should seek to secure favourable terms for a minimum of five years or if they are encumbered by an existing lease, blend and extend is gaining both popularity and acceptance property valuer qualifications Landlords should be flexible in demising space, nimble in meeting tenant requirements and aggressive with concession packages. It will ensure high occupancy during what may be a slow year.

New development opportunities will be quite difficult to source in the years ahead considering the scarcity of land and its associated high price. However, there is a sizable amount of new development underway, but it’s predominantly located in the Oakland/East Bay market, where like most growth areas, it’s following the new home rooftops.

The other source of development is value-added plays involving partial redevelopment of existing centres. No matter how development plays out, there’s a bevy of national retailers trying to establish a strong or stronger foothold in the Bay Area and they’re scouring the market and fiercely competing for the best locations.