Despite speculation of the industrial market turning in the first quarter, the West Orange County market held strong with positive absorption and stable vacancy rates.
Similar to the other markets within the county, West Orange County maintained an overall industrial vacancy rate well below 5%, at just 2.2% in the first quarter.
Huntington Beach led the West Orange County Manufacturing/Warehouse sector in the first quarter with 97,200 square feet of positive net absorption. The positive net absorption in the West County R & D; market was experienced in Huntington Beach, as well as Cypress, where a 77,760 square-foot research & development space was leased.
Gross activity for industrial product in West Orange County reached more than a half million square feet in the first quarter, with the majority of sales and leases being executed in buildings smaller than 30,000 square feet.
As was the case throughout the county, the West Orange County industrial market had limited availability to house tenants larger than 50,000 square feet, with only 16 properties greater than 50,000 square feet in size listed for lease or sale.
Construction activity continued throughout the first quarter in response to the continued low vacancy in West Orange County. Three M & W; buildings completed construction in the city of Westminster during the first quarter, two of which remained vacant upon completion, offering 142,815 square feet of availability to tenants searching for larger space.
One R & D; property also completed construction during the first quarter, adding 66,000 square feet to the R & D; base. Development of the Woodwind Commerce Park and R & D; complex in Huntington Beach continued through the first quarter and will add nearly 85,000 square feet to the market upon completion.
Construction on four warehouse/distribution buildings for the Cypress Corporate Park began during the first quarter, as did a 110,000 square-foot building at the Gothard Distribution Center in Huntington Beach.
Average asking lease rates rose in both sectors of the West Orange County industrial market during the first quarter of 2001. The asking rent for M & W; space rose one cent to an average of 56 cents per square foot, while the asking rent for R & D; space shot up an average of five cents to 72 cents per square foot.
Analysis provided by CB Richard Ellis’ Global Research and Consulting.
