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DESPITE HIGHER VACANCY, THE ORANGE COUNTY
INDUSTRIAL MARKET REMAINS TIGHT
Strong demand and a general lack of available space for the last three
years caused rental rates to continue to climb at a strong pace in the
Orange County industrial market, up 11.1% year-over-year. The weighted
average asking rental rate countywide reached $0.81 PSF per month Triple
Net (NNN). These are record-high rates for Orange County and the
highest industrial rental rates in the Los Angeles Basin. While vacancy
increased by 40 basis points in Q1 2008, limited construction activity
caused industrial vacancy rates to remain low, just 4.2%. Firms looking
to expand continued to have to find creative solutions to meet their needs.
Sales and leasing activity and net absorption remained low, due to a lack
of available space.
Construction activity remained at a low level, due to a general lack of
vacant land and very high land prices for any land that was available.
The outlook is for continued tight market conditions in future quarters.
Contact Michael Gold at 213.532.3247 for more information.
  INDOC08Q1.pdf
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