Q1 2024 Orange County Industrial Market Report

22 Apr

22Apr

Easing tenant demand has led to a significant increase in available industrial space in Orange County.
Total available space has almost doubled, reaching 18 million square feet over the last 18 months.
Both direct and sublet space have contributed to this increase, with sublet space nearly doubling to 3.3 million square feet.
New construction has also played a role, adding 2.6 million square feet of space last year.
As a result, the countywide vacancy rate has risen from a record low of 1.8% in Q4 2022 to 4.1% by the end of Q1.
Negative net absorption was observed in three out of four major submarkets in the county during Q1.
Rent growth has slowed to 2.5% year over year, offering some relief to Orange County tenants.
The current triple-net county average rent is $1.66 per square foot, reflecting a 126% increase over the past decade.

Comments