Office Market
Together, the North and Central areas of Orange County account for nearly 29% of the county’s office base. Average asking lease rates for office space in the North and Central market areas are the lowest of any area in Orange County. To start off the year, North Orange County had an average asking rent of $1.67 per square foot, and Central Orange County was asking an average of $1.62 per square foot. The weighted average for these two areas is just $1.64, 44 cents lower than the Orange County average. The lower asking rents are bringing activity into these markets. During the first quarter of 2000, more than 245,000 square feet of office space were absorbed within the North and Central Orange County market areas, dropping the vacancy rate to 11.11%, down from 12.17% the fourth quarter.
Industrial Market
The North/Central area accounts for 43% of the county’s total industrial base. Approximately 90% of the North/Central County market is made up of manufacturing and warehouse space. As of the first quarter of 2000, another 116,641 square feet were under construction in the M & W; market; no R & D; development was under way. Availability for M & W; space fell to 4.78% in the first quarter, down from 5.67% in the fourth quarter. Availability of R & D; space rose to 7.56% in the first quarter; however, North Orange County remains the market with the lowest R & D; availability. The average asking lease rate for both M & W; and R & D; space dropped in the beginning of 2000. The average asking rent for M & W; space in the first quarter was 46 cents per square foot, down from 53 cents in the fourth quarter, and the average rent for R & D; space was 77 cents, down from 83 cents in the fourth quarter of 1999.
The Retail Market
Central Orange County has the largest retail base of all areas in Orange County. Combined with North Orange County, these two areas account for approximately 51% of the total retail base. In the first quarter of 2000, there were two power centers under construction in the North and Central areas (one in each area) and one specialty center under construction in Central Orange County. Upon completion, these projects will add about 750,000 square feet to the retail base. Although there was 62,614 square feet of positive activity in the North and Central market areas in the first quarter, new construction came on line that caused the vacancy rate to rise to 8.45%. The average asking lease rate rose as well in the first quarter, to $1.39 per square foot, up from $1.36 at the end of 1999.
