The industrial submarket of West Orange County finished the third quarter with an inventory of about 40.3 million square feet, with about 87% in the manufacturing and warehousing segment.
West Orange County carried the highest availability rate on industrial space among OC’s four submarkets during the quarter, at 11.8%. Its vacancy rate of 3.8% was the second highest, behind South OC’s rate of 5.9%.
The bulk of the available space in West Orange County can be found in Cypress, Garden Grove and Huntington Beach, which combine to account for nearly 90% of the total available square footage.
M&W
The manufacturing and warehousing segment in West OC posted positive net absorption of 89,234 square feet in the third quarter. The smaller research and development segment posted negative net absorption of 95,900.
The average asking lease rate for industrial space was $0.57 per square foot for the third quarter, up a penny from the prior period.
West OC’s office sector is the third-largest submarket, behind the Greater Airport Area and South Orange County, with a total of 16.6 million square feet of space. The vacancy level for office space in West OC declined to 16% in the third quarter from 16.6% in the prior period. The decline in vacancy came on 109,446 square feet of positive net absorption, which offset a trend of negative net absorption seen in the first half of the year.
The average asking lease rate for office space in West OC rose slightly from the prior quarter, to $1.75 per square foot, which trails its year-earlier mark by 3 cents per square foot.
Retail Space
The West Orange County submarket currently has 9.8 million square feet of retail space, with a vacancy rate of 5.6% in the segment. The vacancy level remains up significantly from a year ago, but did post a slight decline from 5.7% in the second quarter, when it saw nearly 9,000 square feet of positive net absorption this quarter.
Average asking lease rates continued on a downward trend in the third quarter, with an 8-cent drop from the prior period, to $2.10 per square foot.
Data and analysis provided by CBRE Group Inc.
