R
ohnert Park's commercial real estate market is experiencing a slow start in 2025, with inflation and high interest rates affecting demand. Despite this, the market remains relatively flat, offering favorable conditions for tenants and investors.

    While some sectors show modest growth, leasing activity and occupancy levels remain stable. Vacancy rates increased in 2024, but owner-occupiers continue to acquire buildings. Sales and rental prices have been steady, with landlord concessions holding firm.

    Multitenant industrial and strong-tenant retail properties are in high demand due to low supply. Multifamily apartments and housing-related properties also remain strong investments with stable returns. Rental rates for office space range from $1.45 to $1.90 per square foot, while industrial space remains steady at $1.05 to $1.25 per square foot.

    Notable sales in 2024 include a Dollar Tree store building sold for $4.53 million and the Citadel Apartments sold for $7.08 million. The Santero Way - Cotati Station Apartments project site is under contract for $5.25 million.

    Year-end vacancy rates show retail at 7.4%, office space at 24.9%, and industrial at 10.9%. Demand remains strong for smaller industrial units and retail spaces, while office space absorption remains minimal due to a lack of new jobs in the area.

    As tenants seek better lease terms, we expect continued movement within the market. With plenty of opportunities and a positive long-term outlook, Rohnert Park and Cotati remain attractive locations for commercial real estate investment.