By JIM WOOTAN
When Warren Buffet said the economy “fell off a cliff,” that put today’s economic dilemma in perspective.
He also said the long-term economic picture is positive.
In the fourth quarter of 2007, the countywide vacancy rate for manufacturing and warehouse space was 2.8%. A year later, the countywide vacancy rate rose to 4.1%.
This is a 46% increase in vacancy rates during 12 months.
Needless to say, absorption has been impacted by this increase, with the county seeing negative absorption of 315,172 square feet of manufacturing and warehouse space in the fourth quarter.
As was consistent in the third quarter, the strongest absorption in the fourth quarter occurred in the airport area, which posted 24,297 square feet of absorption.
North County saw 92,507 square feet of negative absorption. West County had negative absorption of 81,676 square feet.
South County recorded the majority of the county’s negative absorbed space with 165,286 square feet.
From an opinion viewpoint moving into 2009, it feels as if the activity level is beginning to increase, which should benefit all of us. There appears to be a consensus that 2010 will be a more “normal” year.
Therefore, the second half of 2009 will hopefully show stronger absorption than the first half of 2009.
Wootan is a first vice president in the Anaheim office of CB Richard Ellis Group Inc.
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