At the end of the third quarter, commercial construction came in at just less than 10 million square feet. Office space made up half of the construction at 4.9 million square feet of space. A close second was retail development with 3.6 million square feet. Industrial buildings came in at just more than a million square feet in construction.
Posting record-low vacancy rates for the past 18 months, the office market leads development with 28 projects that are set to be completed next year and early 2008. Because Orange County continues to host a thriving economy with healthy market fundamentals, demand for office space remains strong.
The majority of the construction is taking place in the greater John Wayne Airport area, and more specifically in Irvine. Development in Irvine consists of more than 680,000 square feet already leased to Broadcom Corp. for its headquarters campus to four high-rise buildings near the airport.
Aliso Viejo’s Summit project also is growing with 500,000 square feet of office space under construction at 20, 30 and 45 Enterprise.
The retail sector, also showing extremely low vacancy levels, has 13 centers under construction. One of the most notable projects is the District in Tustin, part of the redevelopment of the Tustin Marine base. This project calls for a million square feet of retail space as well as office, industrial and residential properties. The Anaheim Gardenwalk project broke ground in the third quarter and is set to add about 439,600 square feet by mid 2007.
Of the 1.1 million square feet of industrial space being built in the third quarter, the majority of the building was fueled by two major developments.
The first being Pacific Gateway Business Park in Huntington Beach, a 626,000-square-foot park consisting of seven buildings, three of which are more than 100,000 square feet. The other major project is a 282,000-square-foot manufacturing facility in Anaheim (1075 North Patt St.). In South County, six research and development buildings are under construction ranging from 17,000 square feet in the Irvine Spectrum to 55,000 square feet in San Clemente.
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