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Wednesday, May 13, 2026

Retailer’s Distribution Center Exception to Rule for Industrial

The office market in Orange County has made strides this year, with sufficient improvement to spark some new construction.

The industrial market is a different story, with speculative development likely to move ahead in the next year if industry chatter proves correct.

The only large industrial project currently under construction in Orange County is a new distribution center for Irvine-based retailer Tilly’s Inc., which is developing the 26,000-square-foot building on its own.

The distribution center is in the Irvine Spectrum, and due for completion in the second quarter of next year.

The industrial market could see other projects move forward before then. The third quarter saw increased action in the segment after cooling off through the first half of the year.

The average asking lease rate for industrial space rose in the third-quarter, its first increase in nearly four years .

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