Rents To Hit New Peak According to NAI Capital Industrial Market Outlook For Orange County, CA
Irvine, CA, Tuesday, April 18, 2017– According to research provided by NAI Capital, in the first quarter of 2017 the Orange County industrial market vacancy rate remained at its lowest level on record. The vacancy rate registered 2.4%, steady from prior quarter and 10 basis points below Q1 2016. The decline in the vacancy rate is be attributed to the lack of new supply on the market. At the end of the first quarter, a mere two buildings totaling 232,519 square feet were under construction. The amount of space under construction has been in decline since Q4 2013 – when 1.2 million square feet was reported under construction. Slack new development and strong demand for industrial space is resulting in rising rents. The average asking rent increased 8.5% from last year, reaching the prior peak set in Q2 2008. Poised to surpass $0.77/SF, the average asking rent is headed toward the highest level on record.
According to David Knowlton, SIOR, CCIM with NAI Capital’s Irvine office, “The general mood in local real estate circles appears to be cautiously optimistic. Leasing and sales activity remains brisk in an extremely tight market, and the development community continues to pursue new opportunities.”
The Orange County industrial market is expected to remain supply constrained in 2017, as land remains expensive, scarce and minimal construction is underway to affect future supply. Reflecting extremely tight market conditions, landlords and sellers will continue to have the upper hand in this market as demand vastly outpaces supply.
To access the full Orange County Industrial Market Outlook report, visit:
About NAI Capital
NAI Capital is the largest independently owned full service commercial real estate firm headquartered in Southern California. As one of the largest members of NAI Global, the premier managed commercial real estate service network with 400 offices and 7,000 market leaders spanning the globe, NAI Capital provides a complete range of transaction, valuation, investment, property management and consulting services. By leveraging our local expertise with our global reach, NAI Capital offers innovative, customized solutions and seamless service to owners, tenants, investors and developers throughout Southern California. NAI Capital clients have built their businesses on the power of our expanding network. We are a dynamic growing commercial real estate company. At NAI Capital we work together putting our clients first.
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To learn more, visit www.naicapital.com
About NAI Global
Founded in 1978, NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of over 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.
NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more, visit www.naiglobal.com.
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