The North Orange County industrial market finished strong in 2010. A flurry of activity in the larger size ranges resulted in 1.1 million square feet of net absorption in the fourth quarter and roughly 2.5 million square feet in all of 2010.
Much of the activity was driven by Corporate America making strategic moves while taking advantage of depressed lease rates and sale prices.
The largest lease completed in the fourth quarter was between Panasonic North America and Panattoni Development.
The 300,000-square-foot deal at the Anaheim Distribution Center represented the last true class A availability of more than 200,000 square feet in the North County submarket.
The lack of available class A space coupled with increased demand are setting the stage for two dynamics the region has not seen in a number of years: rent appreciation and speculative development.
Developers are well positioned to take advantage of this transitioning market. Panattoni is in the planning stages for a number of spec industrial buildings at its Anaheim Concourse project. With virtually no available land for development in North County, the Anaheim Concourse will be a premiere project for years to come.
Peterson is vice president in the Anaheim office of CB Richard Ellis.
The Real Estate Watch Chart
Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
