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INDUSTRIAL MARKET ENDS YEAR WITH WEAK FUNDAMENTALS
The Orange County industrial market finished the year with a dismal Q4, however, there were a few positive characteristics. The struggling economy continued to negatively affect the demand for industrial space. Due to the prolonged setbacks, the total vacancy rate increased 20 basis points from the previous quarter to 6.0% while the availability rate remained flat from Q3 at 11.3%. Although the market experienced a fourth straight quarter of negative net absorption, there were three submarkets (Airport, Central, and South) that did report positive net absorption for Q4
which is a positive note heading into 2010.
Sales and leasing activity reported another decline from last quarter to 2.55 million SF. With over 3 million square feet being returned to the market in 2009, it should be expected that the industrial market will continue to struggle, however, the rate of the space givebacks should begin to subside.
Tenants looking to lease space and potential buyers will be in good positions respectively in 2010 as lease rates and sales prices stay on a downward course.
Contact Jared Dienstag at 949.724.5515 for more information.
  INDOC09Q4.pdf
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