Real Estate Watch: Construction
Construction Remains Modest in All Sectors
Industrial
North Orange County remains the largest industrial market in the county, representing 44% of the rentable square feet.
This growing market also maintains the highest concentration of industrial construction, with 750,000 square feet under way.
A 40,573 square foot warehouse in Brea was the only building to complete construction in the third quarter. West County has two buildings at roughly 10,000 square feet each going up along the coast at the Seacliff Business Center in Huntington Beach.
Lake Forest has a single warehouse project in production, giving South County an additional 10,268 square feet.
In the John Wayne Airport area, an eight-building park in Santa Ana and a three-building park in Irvine both broke ground this quarter and should add almost 400,000 square feet by the end of the first quarter next year.
Office
The construction of low-rise office projects and small office projects continued to be active during the third quarter.
In the airport area, two low-rise office buildings broke ground in Irvine that should add 66,874 square feet of new office space. A three-story building at Newport Center is nearing completion as of this month, and rehabilitation work on 35 Tesla also has finished in the Irvine Spectrum.
More projects expecting to wrap up in the next three months include three small class A buildings at the Bristol Street Promenade in Costa Mesa and the first phase of an 18-building development in the Irvine Spectrum.
Brea is estimating completion of 925 Imperial Highway in the next few months, giving North County an additional 41,075 square feet of office space that is 50% preleased.
Anaheim stands alone in Central County with the only building to break ground this quarter: 1551 Douglass, which will add 50,000 square feet with a low-rise building. It is set for completion in August.
Retail
Construction activity wrapped up on two community centers during the summer, adding about 920,000 square feet to the Orange County retail base.
Westridge Plaza in La Habra is a 695,000-square-foot center anchored by Lowe’s, Sam’s Club, Wal-Mart and Kohl’s. Trabuco Grove, a 225,000 square-foot center in Irvine, also features a Kohl’s and an Albertsons.
With no new construction breaking ground during the third quarter, retail development in the county stands at 410,000 square feet and includes two centers: Anaheim Gateway and Quail Hill Village in Irvine.
Analysis provided by CB Richard Ellis’ global research and consulting unit.
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