Vacancy Falls & Rents Continue to Increase
- The vacancy rate in Orange County decreased by 20 basis points to 3.5% during the fourth quarter.
- Asking rental rates increased 3.2% from one year ago to $0.96 per square foot (PSF) triple net (NNN).
- Industrial demand recorded 955,300 square feet of net absorption with most of the activity occurring in the Airport Area submarket.
- New construction in Orange County remains limited while existing product continues to be converted to alternative property uses.
- Orange County job growth increased by 14,100 jobs compared to one year ago, a growth of 0.8%. The Orange County unemployment rate is still among the lowest in the Nation at 2.5%.
Orange County Industrial Market:
The Orange County industrial market continues to see positive absorption, recording 955,300 square feet in fourth quarter. Much of this positive movement stemmed from tenant movein's in the Airport Area and North County submarkets from large noteworthy industrial tenants.
- As the Orange County industrial market continues to see record low vacancy rates, tenants are struggling to find future space options to meet their needs given the lack of available inventory. As rents continue to rise due to limited space options, industrial users continue to purchase real estate for their businesses, which is further driving up sale prices.
- Recent interest in last-mile distribution centers has put increased focus on the Orange County market, an ideal geographic location in Southern California.