An industrial landlord inked a lease deal for 45,000 square feet at a warehouse and distribution building.
The lease signing hints that Orange County’s industrial market continues to attract leases despite a softening of the market, according to Chicago-based real estate brokerage JLL.
Enso Logistics, a Lake Forest-based storage, supply chain and transportation company, is committed to the industrial space at 1830 Raymer Ave. in Fullerton.
“Despite some softening in Orange [County’s] industrial leasing, the market remains one of the strongest in the United States,” JLL Senior Vice President Xavier Nolasco said in a statement.
“We continue to see moderate demand from a wide range of firms including logistics, aerospace and automotive.
“According to JLL’s [second quarter] 2024 Orange County Industrial Outlook, vacancy currently sits at 4.6% with rents sliding slightly,” Nolasco continued.
JLL represented Enso Logistics in lease negotiations, while the building’s landlord, Irvine-based LBA Logistics, was represented by CBRE.
Enso Logistics is leasing space at a freestanding industrial building with six dock-high loading doors, three oversized grade-level doors and a fenced yard area.
The building was built in 2003 and sits on 2.24 acres, according to CoStar.
Enso Logistics is the property’s sole tenant, also per CoStar.
Orange County’s industrial market has slowed down in recent months, according to multiple brokerages.
Kidder Mathews, in its most recent report, said Orange County’s industrial market remains tight, with this year’s demand for space slower than in 2023.
The OC market is still outperforming the rest of the country, Kidder Mathews said.
“In the second quarter of 2024, the local region’s vacancy rate was 4.3%, which is significantly lower than the 6.5% national average for the major industrial markets. The steady performance of this market is why it continues to play a pivotal role in Southern California’s industrial sector,” per last quarter’s Kidder Mathews report.
“The first half of 2024 experienced a steady expansion of Orange County’s industrial base, driven by new development projects coming online,” the Kidder Mathews report continued.
Notable industrial lease signings from last quarter include Robinson Pharma’s 197,000-square-foot renewal at 1683 Sunflower Ave. in Costa Mesa and Cryogenic Industries’ 147,010-square-foot lease at 5701 Bolsa Ave. in Huntington Beach, per Cushman & Wakefield.
Enso Logistics began moving into the Fullerton industrial space Sept. 1, relocating from its Lake Forest headquarters. The company is moving from Lake Forest to Fullerton to accommodate its “growing business needs,” according to an Enso Logistics statement.
