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OC’s Industrial Market Continues To Sizzle

OC Industrial Market California

By Byron Foss, Executive Vice President, JLL The Orange County industrial market remains one of the tightest markets in the region with 1.7 percent vacancy, 6.6 percent year-over-year rent growth, minimal new development, and owner-users and tenants competing for space. While the third quarter witnessed negative net absorption of 92,790 square feet, this was primarily…

Short Supply Sends Lease Rates, Prices Soaring

Strong demand and the record-low supply of available industrial space are combining to drive up lease rates at a torrid pace with second-quarter average asking rents jumping 4.5 percent over Q1. Virtually every building for lease or sale is drawing multiple offers, regardless of size. Through the second quarter, average countywide lease rates climbed 9.5…

Demand Slows In Q1 But Rents Still Are Soaring

Net absorption stumbled in the first quarter, posting its biggest three-month loss in seven years. But vacancy rates remained in record-low territory with the market’s momentum reflected in skyrocketing rents that have jumped an average of 16 percent in the last eight quarters. More than 682,036 sq. ft. of space came back on the market…

Industrial Demand Shrugs Off Election-Year Uncertainty

Despite a greater than expected drop in leasing activity in the fourth quarter of 2016, demand for space remained strong enough to drive down the industrial vacancy rate deeper into record territory in each of the county’s four submarkets. The last three-month period of 2016 closed with 631,549 sq. ft. of positive net absorption, pushing…

Values Recover, But Market Loses Steam

Orange County’s red-hot industrial market suddenly has taken a breather. After reaching and exceeding historic pre-recession levels, rental rates for Orange County industrial space were flat in the second quarter. Leasing activity is off, averaging 13% fewer deals this year than in 2015 and 21% less than over the last five years. Absorption gained in…

Reading The Market

DJM Capital Partners specializes in special properties. The company, which has a knack for acquiring and repositioning undervalued assets, has most recently focused on two oceanfront Orange County, California retail properties that encountered difficulties under previous owners. “We don’t do a lot of deals, but the deals we do typically have incredible value. The locations…

Except For Lease Rates It’s A Game of Dwindling Numbers

Continued strong demand for industrial space has reduced the already low inventory of vacant property by 25% over the last four quarters. Orange County’s industrial market has been among the nation’s tightest before and since the recession. Average asking rents jumped 12% year-over-year for the largest annual gain since 2010 and rent increases in some…