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Kern County hotel property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| UNITED STATES DATA | Total | Change From 2019 |
|---|---|---|
| Occupancy | 62.70% | -4.90% |
| ADR | $149.00 | 13.6% |
| RevPAR | $93.27 | 8.10% |
Analysis By WPA 2023
Data By STR, TE, February 3, 2023 (Published), As of December 31, 2022
2022 Year End Indicators
* Uneven, non-linear recovery across industry segments.
* Overall construction pipeline activity is down. Some December 2022 growth in construction is seen.
Kern County industrial building property tax appeals are significantly affected by key metrics such as market vacancy and market rent. These trends are summarized below.
| Vacancy % | Total Available % | Total Inventory SF | Asking Rent Avg. Mfg. | |
|---|---|---|---|---|
| Merced | 1.00% | 1.00% | 6,920,180 | $0.57 |
| Madera | 0.00% | 6.60% | 3,198,278 | $0.63 |
| Fresno | 2.60% | 3.10% | 39,180,170 | $0.70 |
| Visalia | 4.30% | 9.00% | 19,209,279 | $0.70 |
| Hanford | 0.10% | 2.00% | 3,801,813 | $0.60 |
| Bakersfield | 3.30% | 6.40% | 32,257,25 | $0.70 |
| Total Industrial Market | 2.90% | 5.20% | 102,035,884 | $0.70 |
Analysis By WPA 2023
Data By CBRE Market Research, February 3, 2023 (Published), As of December 31, 2022
2022 Year End Indicators
* Uneven, non-linear recovery across industry segments.
* Overall construction pipeline activity is down. Some December 2022 growth in construction is seen.
Kern County is located just north of Los Angeles and Ventura counties, which both border it to the south, with San Bernardino County to the east, San Luis Obispo bordering to the west, and Kings, Tulare and Inyo Counties sharing a border on its north side. The largest city in Kern County is Bakersfield.
The Industrial market of the Central Valley experienced total vacancy and availabilities in the fourth quarter of 2022 of 5.2%. Of this total, 2.9% were direct vacancy with total availabilities increased by sublease space. The largest industrial market in the Central Valley by total inventory is Fresno, with 39.2 million square feet, comprising 38.4% of the total market, and experienced total vacancy and availabilities of 3.1%. The next largest market is Bakersfield, which contains 32,257,255 square feet, or 31.6% of the market inventory, and experienced total vacancy and availabilities of 6.4%. The next largest market is Visalia, which contains 19,209,279 square feet, or 18.8% of the market inventory, and experienced total vacancy and availabilities of 9.0%.
Among largest rental deals for industrial in the quarter for the South Central Valley market were leases to IKEA and GAF. IKEA signed a lease for 629,274 square feet at 5151 Wheeler Ridge Road in Tejon Ranch. GAF executed the second largest lease for 309,274 square feet in Shafter.
New construction completed in the market in the fourth quarter of 2022 was 1.1 million square feet, and construction in progress throughout the South Central Valley market was 2.7 million square feet.
Increasing Federal Funds rates, driving up interest rates, has warranted adjustments to the economic outlook for some property. The Conference Board is a non-profit think tank which addresses economic issues, among a range of subjects. In late 2022, they make the following statement:
“The Conference Board forecasts that US economic weakness will intensify and spread more broadly throughout the US economy over the coming months with a recession to begin around the beginning of 2023. This outlook is associated with persistent inflation and rising hawkishness by the Federal Reserve.”
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