· Tenant demand in Orange County slowed in the first half of the year.
· Vacancy rate increased from 1.9% at the end of 2022 to 4.4%.
· Leasing activity decreased.
· Rent growth has flattened after over a decade of steady double-digit annual growth.
· Negative net absorption of 799,275 SF in Q2 and negative 2.1 million SF in Q1.
· Total decline in the past six quarters exceeds 5 million SF.
· Long-term average vacancy rate since 2020 is 4.5%.
· Tenants face less competition for space.
· Landlords are offering more lease concessions.
· Largest sale in Q2: 278,572-SF Fullerton building sold for $338 per SF by American Realty Advisors to Rexford Industrial Realty.
