West Orange County’s core is made up of manufacturing and warehouse buildings.
There are 939 manufacturing and warehouse buildings with more than 1 million square feet of space in West County.
The region, once dominated by the aerospace and defense industry, now is home to a diverse crop of industrial companies.
Manufacturing and warehouse vacancy rose to 3.3% in the third quarter, up from 2.8% a year earlier. Despite the slight rise, the relatively low vacancy rate helped push average asking rates up 6 cents to 64 cents per square foot in the period, versus a year ago.
There is more than 400,000 square feet of manufacturing and warehouse space in the development phase in West County.
Most of the construction is taking place at the Astronautics Corporate Center in Huntington Beach.
This center, which is set to include five buildings totaling more than 218,000 square feet, is on former Boeing Co. land.
The buildings are expected to be finished by the end of January. They range from 18,329 to 62,639 square feet.
Another 185,000-square-foot distribution facility also is under construction in Huntington Beach. That facility is set to be finished in the first quarter.
West County’s manufacturing and warehouse market recorded a slowdown in activity during the third quarter, which led to about 71,000 square feet of negative absorption in the period.
But demand is expected to be very strong with a limited supply of industrial properties pushing property values higher.
Demand is driven by the lack of infill property to build on and of obsolete facilities not ready for redevelopment.
The impact of residential and other development that includes a mix of office, retail and homes, also is evident in the lower amount of industrial space in West County.
Analysis by CB Richard Ellis Group Inc. Research.
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