There were approximately 1.1 million square feet of industrial space under construction at the end of the third quarter.
A new project in Brea consisting of three class A buildings totaling 358,123 square feet broke ground. That was in addition to the 626,139 square feet under way at the Anaheim Concourse Distribution Center.
The final phase for the center is scheduled to begin soon.
Two buildings totaling 144,754 square feet are being constructed on Gothard Street in Huntington Beach.
A record-low industrial vacancy rate of 2.4%, along with Orange County having one of the lowest unemployment rates—5.4%—are strong indicators of continued positive momentum for developers.
Asking sale prices increased 6% over the second quarter as a result of strong market conditions. North Orange County, where the majority of the new construction was taking place, had a 7.5% increase in asking sale prices year-over-year.
Industrial Development
The industrial market is the most active in terms of new development, but the lack of available land in Orange County and the high cost of construction have kept industrial development to a minimum compared to historical levels.
Residential development has also brought competition and started to shrink the overall industrial base. But with vacancy rates continuing to decrease and demand for state-of-the-art buildings still high, developers are actively pursuing new opportunities in the infill Orange County industrial market.
Young is a vice president at CBRE.
