North/Central Orange County’s office, industrial and retail real estate sectors posted 447,841 square feet of positive net absorption in the first quarter.
The gain came on the heels of a robust fourth quarter. The ongoing positive absorption has led to decreased vacancy rates and increased lease rates almost across the board.
The North/Central market includes 6.3 million square feet of space,3,282 buildings,with 467,647 square feet in the construction phase.
Office space in North/Central County produced an average asking rate of $1.77 per square foot in the first quarter, up 6 cents from the fourth quarter.
There was 62,623 square feet of positive absorption in the area’s office market, with the vacancy rate falling to 8.3%. That’s a 21.8% drop from the first quarter a year earlier.
North/Central County’s industrial market saw 1.5 million square feet of gross activity and 497,189 square feet of positive absorption in the first quarter.
The manufacturing and warehouse sector recorded 508,189 square feet of positive absorption while the research and development market posted negative 11,000 square feet of absorbed space.
Although R & D; space had negative absorption in the first quarter, the average asking lease rate rose 1 cent to 75 cents per square foot.
Lease rates in the manufacturing and warehouse sector, meanwhile, were 51 cents per square foot in the first quarter, up 4 cents versus the fourth quarter.
In contrast to the strong activity seen in the office and industrial markets, North/Central County’s retail sector slowed down.
The retail sector saw negative absorption of 111,971 square feet in the first quarter, with vacancy rising 21% to 1.7%.
Retail lease rates fell 11 cents to $2.14 per square foot in the period.
Analysis provided by CB Richard Ellis Group Inc.’s Information Management unit.
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