The South Orange County market is made up of more than 1,530 office, retail and industrial buildings totaling 67.9 million square feet.
This ever-changing market contains relatively new buildings while still being able to accommodate development.
Vacancy levels remain in the single digits for all space with the lowest being manufacturing and warehouse, which stands at 1.6%.
Research and development industrial properties have a slightly higher vacancy rate at 5.3%, as well as office space at 5.7%. Vacancy rates for retail space saw a recent decrease, still holding a healthy rate of 4.4%.
Rents
Rents have increased dramatically across the board. The average asking monthly lease rate for office space in South Orange County climbed 23 cents in the past year to $2.46 per square foot. Industrial space also saw a rise in rates with manufacturing and warehouse now asking an average 84 cents per square foot, and R & D; space going for an average $1.07 per square foot.
The average asking lease rate for retail space has dipped 16 cents from last year to $2.65 per square foot, though it’s up from the second quarter.
Development
Because South Orange County contains available vacant land, construction continues to thrive.
Currently, there is more than 3 million square feet of commercial space in the construction phase.
The majority of this development is 1.9 million square feet of office space that is due to complete by the end of the year and early 2007.
Housing development in the South Orange County region has driven construction of retail centers to 911,291 square feet.
Expansion of the industrial market remains conservative with only 158,064 square feet under construction.
Analysis provided by CB Richard Ellis Research
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