West County continues to be a strong market for all commercial real estate sectors.
The market posted positive net absorption of more than 623,000 square feet last year. There is 540,000 square feet under construction.
The area, which includes Cypress, Westminster and Huntington Beach, among others, is seen as a solid alternative to the pricier greater John Wayne Airport area because of its proximity to Los Angeles and the ports.
Office vacancy has fallen to 11.7% from 15.9% a year ago. Average asking lease rates for office space in the fourth quarter were up 4 cents per square foot, versus the third quarter, and 1 cent higher from a year earlier.
There is no office construction under way, though one manufacturing and warehouse project is being built.
The Astronautics Corporate Center in Huntington Beach is expected to add 217,523 square feet when it’s finished.
The manufacturing and warehouse and research and development sectors saw 310,000 square feet of absorption last year.
Vacancy for retail space rose slightly in the fourth quarter, but still is low at 3.3%.
Although vacancy was up a bit in the quarter, average asking lease rates continued their climb last year.
West County retail rates jumped to $2.03 per square foot at the end of the fourth quarter, versus $1.54 per square foot a year earlier.
There are two projects under way for a total of 312,000 square feet of new retail space.
The Lowe’s center on Beach Boulevard and Warner Avenue in Huntington Beach is set to finish in the first quarter.
Meanwhile, a 150,000-square-foot center downtown Huntington Beach on Main Street is set for completion later this year.
Analysis provided by CB Richard Ellis Group Inc.’s Information Management Department.
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