53.2 F
Laguna Hills
Thursday, Mar 28, 2024
-Advertisement-

REAL ESTATE WATCH: MANUFACTURING and WAREHOUSE

At the close of the fourth quarter, the Orange County manufacturing and warehouse market posted almost 2 million square feet of gross activity for the quarter.

The North County submarket accounted for 1.2 million square feet of the overall activity, but most of it was negative.

Negative absorption was 521,146 square feet, with the majority of that—436,365 square feet—in the North County submarket. In addition, this submarket currently has 496,921 square feet of space under construction, representing the only new warehouse construction in OC.

The OC manufacturing and warehouse market continues to see both availability and vacancy levels increase, which is echoed in the county’s broader industrial sector as tenants are vacating properties or downsizing space.

The countywide vacancy rate increased about 3.9% during the fourth quarter, bringing it to 5.3%—up 47.2% over the vacancy rate at the end of 2008, which was just 3.6%.

Still, the single digit vacancy rate remains relatively healthy compared to other Southern California markets. Of the four OC submarkets, North County is tracking the highest vacancy rate, at 6.1%. West County vacancy was 3.9% at the end of the fourth quarter, while the airport area was 5% and the South County submarket’s vacancy was 4.8%.

Average asking sale and lease rates in the manufacturing and warehouse sector of OC continue to decrease, which directly correlates to the increase in vacant and available space coming on line as property owners must compete for tenants.

At the end of the fourth quarter, the average asking sale price for warehouse space was $131.87 per square foot, while the average asking lease rate was 56 cents, down one cent from the previous quarter and down 11 cents from a year earlier.

Data and analysis by CB Richard Ellis Group.

Want more from the best local business newspaper in the country?

Sign-up for our FREE Daily eNews update to get the latest Orange County news delivered right to your inbox!

-Advertisement-

Featured Articles

-Advertisement-
-Advertisement-
-Advertisement-
-Advertisement-

Related Articles

-Advertisement-
-Advertisement-