The south Orange County market is made up of more than 1,560 office, retail and industrial buildings totaling 69.2 million square feet.
This ever-changing market contains newer space while still being able to accommodate development.
Vacancy levels remain in the single digits for all types of space, with the lowest being manufacturing and warehouse space at 2.1%.
Research and development industrial space has a slightly higher vacancy rate at 6.3%, as well as office space at 7.8%.
Vacancy for retail space saw a recent increase, yet still holds a healthy rate of 4.6%.
Rental rates have increased dramatically across the board.
The average asking lease rate for office space in south Orange County has climbed 34 cents in the past year to $2.62 per square foot per month.
Industrial space also saw a rise in rates with manufacturing and warehouse space now asking an average 81 cents per square foot, and R & D; space going for an average $1.04 per square foot.
The average asking lease rate for retail space has dipped 10 cents from last year to $2.68 per square foot, which represents an increase the third quarter.
Construction continues to thrive since south Orange County has vacant land.
Currently, there is more than 2.5 million square feet of commercial space in construction. The majority of this development is 1.6 million square feet of office space that is due to complete this year and into early 2008.
Continuous housing development in the south Orange County region has driven construction of retail centers to 703,391 square feet.
Expansion of the industrial market remains conservative with only 220,238 square feet under construction.
Office market: includes buildings 30,000 square feet and larger, excluding medical and government, in Aliso Viejo, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, San Clemente, San Juan Capistrano, Rancho Santa Margarita and Irvine Spectrum. Rental rates are full-service gross. Industrial market: includes manufacturing and warehouse and R & D; buildings 10,000 square feet and larger in Aliso Viejo, Foothill Ranch, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, San Clemente, San Juan Capistrano, Rancho Santa Margarita and Irvine Spectrum. Gross available includes space under construction. Rental rates are triple net. Retail market: includes centers 50,000 square feet and larger in Aliso Viejo, Dana Point, Laguna Hills, Laguna Niguel, Lake Forest, Mission Viejo, San Clemente, San Juan Capistrano and Rancho Santa Margarita. Vacancy and rents exclude regional malls and free-standing buildings, and are shown for shop space only, excluding anchor tenants. Gross available excludes space under construction. Retail rents are triple net. For all types of space: Historical figures have been adjusted to reflect changes to the base. Historical figures reported may not agree to previously reported figures.
