West Orange County, with manufacturing and warehouse and research and development combined, had a 4.6% vacancy rate at the end of the third quarter, continuing a steady decline from the second quarter, when the vacancy rate was 5%.
But a rise in sale prices and lease rates continued due to the decrease in vacancies.
The West Orange County submarket is made up of about 41.5 million square feet.
User demand and activity also increased, boosting the overall market fundamentals.
The third quarter accounted for the vast majority of net absorption to that point in 2013, with a total of 173,372 square feet. Year-to-date, net absorption totaled 460,131 square feet at the end of the quarter.
West Orange County had an overall average asking lease rate of 60 cents per square foot, increasing 1 cent from the previous quarter. But there was an annual increase of 5.2% from the 57 cents per square foot recorded in the third quarter of 2012.
Shea Properties was scheduled to start construction last month on a 51,200-square-foot building and a 93,260-square-foot building in Huntington Beach. A recent sale/lease-back of a 67,000-square-foot flex building at 10741 Walker St. in Cypress to ProLogis Inc. was priced at $114 per square foot.
Additionally, a 28,000-square-foot lease was signed at 5082 Argosy Ave. in Huntington Beach for 65 cents triple-net, per square foot, per month.
Lastly, a 1-acre parcel of industrial-zoned land in Huntington Beach recently sold for $41.38 per square foot.
Goodmanson is a senior vice president, and Schneider is an associate analyst, with CBRE.
