The manufacturing and warehouse segment of Orange County’s industrial market saw a slowdown in the second quarter, with 350,680 square feet of negative absorption.
The manufacturing and warehouse segment includes 5,706 buildings and about 209 million square feet of space. It represents about 83% of the county’s industrial market.
The North Orange County submarket accounted for most of the negative absorption for manufacturing and warehouse, with a decline of 227,032 square feet.
West Orange County saw a dip of 211,303 square feet of negative absorption.
South Orange County recorded 119,790 square feet on the negative side.
The Greater Airport Area submarket continued its recent strength, running counter to the countywide trend with 207,445 square feet of positive absorption.
North Orange County had the most available space of any submarket at the end of the second quarter, with nearly 8.6 million square feet. That’s about 43% of the total available.
The area around John Wayne Airport finished the second quarter with 2.5 million square feet available, about 29% of the countywide total.
South Orange County accounts for about 16% of the available space, while about 11% can be found in West Orange County.
The recent slowdown on leasing came as lease rates continued to show signs of stabilizing. The overall average asking lease rate for manufacturing and warehousing space increased to 53 cents per square foot in the second quarter, on par with the prior period and up two cents from a year earlier.
The area around John Wayne Airport saw the average asking lease rate rise to 53 cents, a three-cent gain from the prior period but off seven cents from a year earlier.
North Orange County finished the second quarter at 46 cents, also even with the prior period. The North Orange County rate fell two cents from a year earlier.
The West Orange County market saw the average rate fall to 48 cents, down two cents from the prior period and five cents from a year earlier.
South Orange County saw the average asking rate finish the second quarter at 61 cents per square foot, down one cent from the prior period, but up two cents from a year earlier.
Seybold is a senior vice president in the Orange office of CB Richard Ellis.
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