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2019 Q2 Orange County Industrial Knowledge Report

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Vacancy Decreased In Second Quarter 2019

Key Takeaways

  • The vacancy rate in Orange County decreased by 10 basis points to 3.9% during the second quarter. Vacancy stood at 2.2% one year ago.
  • Asking rental rates increased 4.5% from one year ago to $0.93 per square foot (PSF) triple net (NNN).
  • Despite the drop in absorption last quest, industrial demand recorded positive at 315,700 square feet of net absorption. Much of this positive demand was concentrated in the North County submarket.
  • New construction in Orange County remains limited as industrial inventory continues to deplete due to new user property types.
  • Orange County job growth increased by 18,600 jobs compared to one year ago, a growth of 1.1%. The Orange County unemployment rate is still among the lowest in the Nation at 2.4%.

Outlook:

Despite the increase in availability, tenants are struggling to find future space options to meet their needs given the lack of available inventory.

Economic headwinds, along with threats of an ongoing trade war and concerns of a southern border, remain background noise to an industrial market seeking record-low vacancy rates and record-high asking rates.

 

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2019_Q2_OCIndustrial

2019 Q2 Orange County Industrial Knowledge Report

Download Report