Orange County’s real estate market in late 2011 began showing upbeat signs—such as positive net absorption—not seen since prior to the start of the recession in 2008.
Other recent trends include large corporations entering the marketplace, a modest uptick in rental rates, the return of manu-
facturing tenants and a big demand for class A space of all sizes. The market is continuing to pick up momentum as these trends continue in the first couple of months in 2012.
Meantime, local developers are battling for the limited supply of infill land sites, and a lack of class A buildings is driving speculative development. The demand is there and supply is virtually non-existent, with more than 84% of all industrial buildings in OC dating from before 1990 and a class A vacancy rate of less than 1%.
There are three developments currently in the planning stages:
• Western Realco LLC will build two
of them—an 80,000-square-foot building in Brea and a 200,000-square-foot building in the Anaheim Stadium area.
• And Panattoni is close to breaking ground on the first two phases of its 100-acre-plus Anaheim Concourse project.
The Panattoni project’s first two phases will commence construction at the same time and will have eight buildings totaling more than 800,000 square feet. The Ana-heim Concourse will permanently change the landscape of Anaheim Canyon.
Peterson is a vice president in the Orange office of CBRE Group Inc.
The Real Estate Watch Chart
Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
