IRR-Orange County Mid-Year Viewpoint 2015 Local Market Report - Retail
The Orange County retail market has remained tight due to the restraints on retail real estate development in combination with favorable long and short term economic trends. Presumably developers would build more if they were less constrained by land availability, development costs, and community resistance. Less than 100,000 square feet of retail space completed construction in 2013 and 2014 followed with only 226,500.
Interestingly Orange County malls are thriving while regional malls nationwide are experiencing increased stress. In a trend shared with much of the nation, development in the county leans toward mixed-use endeavors. Of the retail space now under construction countywide, 87.2% belongs to two mixed-use projects. In addition, a large outlet center is planned.
Positive but modest rent growth is indicated. Moderate increases in community-neighborhood shopping center development are anticipated for the coming period; demand is expected to keep pace. Vacancy in this sector could close 2015 at about 5.0%. Rent growth in the neighborhood of 3.0% on average is projected for the year. Residential development in the county’s master-planned communities bears watching for its impact on retail demand.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.