Orange County had approximately 1.2 million square feet of industrial space under construction at the end of the second quarter, with the majority, or 849,015 square feet, concentrated in North Orange County.
Most of the buildings have been presold or preleased and will have little impact on availability and vacancy rates. Also, three buildings in Brea totaling 357,858 square feet were delivered to the market during the quarter.
Preleases and the lack of substantial construction have kept the supply tight for many tenants desiring quality space. CBRE Econometric Advisors predicts that absorption will continue to outpace completions well into next year.
The Irvine Company’s project at 200 Spectrum has been the only prominent ground-up office building under construction since last year’s third quarter. It’s scheduled to be delivered in April.
The 425,000-square-foot, prime class A property will be welcomed in the particularly tight Irvine Spectrum submarket, which ended the quarter with a vacancy rate of 3.3%.
The city of Tustin recently entered into an exclusive negotiating agreement with Lincoln Property Co. to move forward with Cornerstone I, a 760,000-square-foot, creative-office project with almost 100,000 square feet of supporting amenities and retail space.
The project is just one element of Tustin Legacy, a 1,600-acre master-planned redevelopment of the old Marine Corps air station.
Trammell Crow Co. recently announced plans for The Boardwalk, a 545,000-square-foot premier office campus spread across two nine-story towers.
Bridges connecting the towers will have space for occupancy. The airport office area project will include 2 acres of landscaped, pedestrian-friendly grounds and creative accessory retail.
Data and analysis provided by CBRE Research
