The first quarter of 2024 Industrial Real Estate Report is out for the Orange County market.
- 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.
