The North and Central Orange County markets combined include nearly 3,300 office, retail and industrial properties totaling 170.5 million square feet.
Vacancy levels remain in the single digits for all types of space with the lowest being retail space, which has fallen to less than 1%.
Research and development industrial space has a slightly higher vacancy rate at 2%, as well as manufacturing and warehouse at 2.2%.
Vacancy for the area’s office space declined from the fourth quarter to the first to a healthy rate of 7.2%.
Tight vacancy levels have pushed rents upward. The average asking lease rate for office space in North Orange County has climbed 50 cents in the past year to $2.36 per square foot. Central Orange County office space is at $2.17 per square foot.
Industrial space also saw a rise in rates with manufacturing and warehouse space now asking an average 58 cents per square foot and R & D; space going for an average 79 cents per square foot.
The average asking lease rate for retail space also is on the rise with an average asking rent of $2.49 per square foot.
Due to a lack of available vacant land, redevelopment accounts for the majority of construction in North and Central Orange County.
There is nearly 2 million square feet of commercial space in the construction phase. The majority is 1.9 million square feet of retail space at projects such as The District in Tustin and Anaheim GardenWalk.
Expansion of the industrial market remains conservative with only 63,180 square feet of manufacturing and warehouse space under construction.
Data and analysis provided by CB Richard Ellis Group Inc.
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