As the fourth quarter came to an end, Orange County’s manufacturing and warehouse industrial sector closed at a steady pace.
With nearly 5,600 properties larger than 10,000 square feet and totaling more than 204 million square feet, this market continues to hold a low vacancy level at 2.7%.
The average asking lease, while dipping one cent to 70 cents per square foot, has seen a significant increase from 64 cents per square foot in the fourth quarter of 2006.
Industrial construction remains minimal with only 181,800 square feet in the development phase.
There was nearly 2.4 million square feet of gross lease and user sales recorded in the fourth quarter, bringing the 2007 total to more than 8.6 million square feet of gross activity.
The majority of manufacturing and warehouse properties can be found in North Orange County, which has 48%, or 98.2 million square feet, of the county’s space. And although this submarket holds the greatest amount of manufacturing and warehouse space, the overall vacancy rate falls below the county average at 2%.
Average asking lease rates have seen an increase since last year but remain steady at 63 cents per square foot.
North Orange County also accounted for the bulk of fourth quarter activity with 1.4 million square feet of gross leases and sales. Construction also is concentrated in this northern submarket at 118,080 square feet.
With 53.8 million square feet, the greater John Wayne Airport area is the second largest manufacturing and warehouse submarket in OC. Unlike the growing North County market, the airport area has seen the removal of several manufacturing and warehouse properties in the past year.
In 2007, there were five buildings totaling 504,000 square feet, which were demolished and/or converted to non-industrial properties.
And as 2007 closed on a positive note, the beginning of 2008 also starts on one. The outlook for OC’s manufacturing and warehouse sector is strong as users continue to seek space in this desirable and centrally located region.
Analysis provided by CB Richard Ellis Group Inc.
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