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Orange County Industrial Market Outlook 1Q 2018

05/01/2018
Published By: NAI Capital Research

MARKET OVERVIEW
A rising average asking rent and a declining vacancy rate defined the
Orange County industrial market in 1Q 2018. The average asking rent
averaged $0.85/SF, up 1.2% from the prior quarter and 10.4% from last
year at this time. Vacancy was the lowest rate on record, ending the quarter
at 2.3% for the first time. Lack of developable land limited construction,
which totaled 800,00 SF at the end of the quarter. The sole delivery
stemmed from a deal signed in 2017: a 170,000 SF warehouse in Anaheim
fully leased to Rosendin Electric. A strong economy drove demand for
industrial space. The Port of Los Angeles and the Port of Long Beach saw
total cargo volume of more than 2.8 million TEUs in January and February
2018, up 12.7% from this time last year with imports up 14.6%. The ports’
cargo volume contributed to demand as Orange County industrial space
attracts a dynamic mix of tenants. The smaller size of industrial buildings in
Orange County lent itself to a wide range of users including manufacturers,
distributors, and local businesses.

Release Date05/01/2018 - 12:00

Source

NAI Capital

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