Vacancy Decreases as Demand Returns
- The vacancy rate in Orange County decreased 50 basis points to end 2.7% for the quarter.
- Asking rental rates have remained unchanged at $0.98 per square foot (PSF) triple net (NNN).
- Industrial demand was positive 677,018 square feet of net absorption. Demand for industrial space in buildings smaller than 100,000 square feet represented 77% of net absorption for the quarter.
- New construction in Orange County remains limited, with only 875,780 square feet of space currently under development.
- One positive sign is that sales and leasing activity has increased dramatically from the previous quarter. Gross absorption for the quarter was 4,182,352 square feet. This increase in leasing activity is due to pent-up industrial demand from the previous quarters.
Orange County Industrial Market
Given the impact of COVID-19, Orange County industrial market fundamentals saw little change over the quarter.
Orange County industrial vacancy rates are expected to remain among the nation's lowest for the time being. Over the last year, Orange County saw leasing demand grow from e-commerce and logistics companies. These companies have been expanding as consumer behavior continues to adapt.