The South Orange County market is made up of more than 1,500 office, retail and industrial buildings totaling 2.6 million square feet.
This ever-changing market contains relatively new space while still being able to accommodate development.
Vacancy levels remain in the single digits for all space types with the lowest being manufacturing and warehouse, which stands at 2.7%. Research and development buildings have a slightly higher vacancy rate at 5.7%. Office space is at 5.6%. Vacancy rates for retail space experienced a recent increase, but still are at a healthy rate of 4.5%.
With the exception of retail, rental rates have increased dramatically across the board.
The average asking lease rate for office space in South Orange County has climbed 28 cents in the past year to $2.44 per square foot. Industrial space also saw a rise in rates with asking rates at an average 74 cents per square foot, and R & D; space going for an average 95 cents per square foot.
The average asking lease rate for retail space has dipped 10 cents from last year to $2.58 per square foot.
Construction continues to thrive.
Currently, there is more than 2.1 million square feet of commercial space in the construction phase. The majority of this development is 1.4 million square feet of office space that is due to done by the end of the year and early 2007.
Continuous housing development in South Orange County has driven construction of retail centers to 757,000 square feet. Expansion of the industrial market remains conservative with only 22,708 square feet under construction.
Analysis provided by CB Richard Ellis Research.
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