Orange County’s manufacturing and warehouse market, which improved steadily through the first half of the year, hit a slowdown in the third quarter.
Activity dipped across OC, with 107,378 square feet of negative net absorption.
It was a relatively small setback on a base of about 209 million square feet, and vacancy rates remained just above 3%.
The overall average asking lease rate for manufacturing and warehouse space stayed at 56 cents per square foot in the third quarter.
Total gross activity among manufacturing and warehouse properties was 1.8 million square feet for the period, with the bulk occurring in the North OC submarket.
The Greater Airport Area and South Orange County faired similarly with 496,443 and 466,376 square feet of gross activity, respectively. West OC experienced 242,086 square feet of leases and user sales in the third quarter.
Asking rents for manufacturing and warehouse space were about the same as in the second quarter. That keeps the average asking lease rate at 56 cents per quarter foot, up by 3 cents since over the past 12 months.
South OC continued to have the highest average lease rate in the third quarter, at 67 cents per square foot. North OC had the lowest at 48 cents per square foot.
The strong year so far has led to limited availability and prompted developers to begin building manufacturing and warehouse properties in OC for the first time since 2007.
An 84,350-square-foot building recently broke ground last quarter in Brea. And the 15-building Anaheim Concourse project, long-stalled during the economic downturn, should get going in earnest in the first quarter.
Data and analysis provided by CBRE Group Inc.
The Real Estate Watch Chart
Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
