Real Estate Watch: West County
Industrial Market Tight in West County
West Orange County is the tightest industrial market in OC with vacancy rates less than 4% at the end of the first quarter. The overall availability rate was 6.5%.
Leasing activity in the West County industrial market increased slightly to 309,449 square feet during the first quarter. Most activity was in the manufacturing and warehouse sector, including one lease in Huntington Beach for about 105,000 square feet.
There was just one lease deal in the research and development market. It was for 45,656 square feet.
Sublease space remains a big part of West County’s availability rate. It was about 29% of the total space marketed for lease.
The overall asking net lease rate dropped an average of six cents during the first quarter to 58 cents per square foot, as owners were compensating for the oversupply of sublease space.
West County sale activity was focused in the manufacturing and warehouse market in the first quarter. Three manufacturing buildings were sold in the quarter, all less than 25,000 square feet.
Sale prices for manufacturing and warehouse buildings rose 4% to an average of $96.69 per square foot.
Despite a 10% decline in research and development asking sale prices because of minimal activity, the overall asking sale prices for industrial space in West County ended the first quarter at $97.11 per square foot, up 12% from asking prices a year ago.
No new projects broke ground in West County in the quarter. But construction continued on three buildings in Huntington Beach.
Current development activity in the West County industrial market includes one 109,650-square-foot warehouse building and two buildings at Seacliff Business Center totaling 21,252 square feet.
The buildings are set for completion by midyear.
Data and analysis provided by the information management department of CB Richard Ellis.
