The airport area is made up of more than 2,720 office, retail and industrial properties totaling 127.3 million square feet.
This ever-changing market contains a large percentage of existing buildings while still being able to accommodate development.
Vacancy levels remain in the single digits for all types of space with the lowest being research and development at 1.9%.
Manufacturing and warehouse buildings have a slightly higher vacancy rate at 2.9%, as well as retail space at 3%.
Vacancy rates for office space saw a recent increase, still holding a healthy rate of 8.8%.
Rental rates have increased dramatically across the board.
The average asking monthly lease rate for office space in the airport area has climbed 33 cents in the past year to $2.61 per square foot in the fourth quarter.
Industrial space also saw a rise in rates with manufacturing and warehouse space now asking an average 71 cents per square foot a month. R & D; space goes for an average 92 cents per square foot.
The average asking lease rate for retail space rose 29 cents from last year to $2.65 per square foot, though that was down from the third quarter.
With vacancy tight, construction,specifically in the office sector,continues to thrive. More than 3.7 million square feet of commercial space is under construction.
The majority of this development is 2.8 million square feet of office space due to finish by late 2007 and early 2008.
The addition of homes to the area has driven construction of retail centers to 849,288 square feet in the fourth quarter.
Analysis provided by CB Richard Ellis Research.
Office market: single-and multi-tenant buildings and parks of 30,000 square feet or larger, excluding government and medical buildings, in Corona del Mar, Costa Mesa, Fountain Valley, Newport Beach and parts of Irvine, Santa Ana and Tustin. Includes airport office area, Irvine Business Complex, Newport Center and South Coast Metro submarkets. Rental rates are full-service gross. Industrial market: buildings 10,000 square feet or larger in Costa Mesa, Fountain Valley, Newport Beach, Santa Ana, Tustin and Irvine other than Irvine Spectrum. Gross available includes space under construction. Rental rates are triple net. Retail market: Centers 50,000 square feet or larger in Costa Mesa, Irvine and Newport Beach. 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. Historical figures for all types of space have been adjusted to reflect changes to the base. Historical figures reported herein may not agree to previously reported figures.
