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etaluma's commercial real estate market is showing signs of recovery, with industrial and office leasing activity on the rise in 2024. While vacancy rates remain high, increased transactions and shifting tenant demand indicate growing confidence across various property types.
Currently, there are 31 industrial properties available for lease, with six large spaces exceeding 80,000 square feet accounting for about 7.6% of the city's total industrial base. If these spaces were fully leased, the actual industrial vacancy rate would drop to 6.6%. Five of the available properties are also for sale, suggesting that owners and brokers may be favoring one option over the other.
In 2024, 14 industrial leases were signed, totaling less than 62,000 square feet. The largest deal was at 2210 Pine View, where 15,580 square feet is being repurposed for a family-oriented recreation concept. On the sales side, industrial transactions were steady compared to 2023, with six properties closing in 2024.
Office leasing volume saw a notable increase in 2024, with 52 transactions (including two renewals) compared to 39 in 2023. The majority of these deals were small user leases, indicating optimism for growth over the next three years. The largest office lease was for 15,000 square feet at 860 Lindberg Lane.
The volume of office and flex space sales increased in 2024, with nine closings compared to seven in 2023. Several "white elephant" properties also sold, signaling that buyers are broadening their search criteria. Across the broader market, including retail, office, industrial, medical, and flex spaces, 91 leases were signed in 2024.
Looking ahead, despite some uncertainty surrounding new economic policies, the market is showing signs of recovery. The most valuable thing to focus on is the opportunities available today, rather than speculation about future outcomes. With real estate being a tangible asset, it's essential to ignore the noise and focus on the current market conditions, which are ripe with opportunity.
