TENANT DEMAND, RENT GROWTH COOLS Easing overall demand for industrial space continued in the second quarter, pushing up the countywide vacancy rate to 3.9%, a percentage point more than a year ago and its highest in five years. Tenants shed 519,062 SF in the second quarter and 1,826,119 SF of space in the first half, the most since the recession. South County was the only market with positive net absorption in Q2 with 206,512 SF…
Q2 2019 Orange County Office Market Report
STRONG FIRST-HALF DEMAND; AIRPORT MARKET LEADS TENANT GROWTH Demand for Orange County office space posted the strongest first half in four years, led by solid tenant growth that lately is trending in the direction of Airport-area buildings. The overall market is in its ninth straight year of steady tenant expansion, during which occupancy gained 12.4 million SF. Net absorption has been positive for 30 of 36 quarters. At the same time 46 buildings have been…
Q1 2019 Orange County Industrial Market Report
RENTS SPIKE AS EASING DEMAND CONTINUES Lease rates jumped a record 4.7% in the first quarter and gained 8.8% year over year for the largest quarterly and annual increases since the recession. At the same time, first-quarter demand for space posted its biggest three-month decline in more than eight years, pushing up the countywide vacancy rate 70 basis points to 3.5%. Despite otherwise healthy leasing activity, the county’s four major submarkets – Airport, North, South…
Q1 2019 Orange County Office Market Report
TENANTS SEE VALUE IN CLASS A SPACE Orange County’s office market opened the year with continued healthy demand for Class A space. The continuing trend is well-timed for developers of 14 buildings totaling more than 1.3 million sq. ft. that are being completed in South County, Central County and in the Airport market. In the last eight quarters, 13 buildings totaling 2.7 million sq. ft. have been added to the Class A inventory with absorption…
Q1 2017 Retail Market Brief
RETAIL SECTOR HOLDS THE LINE IN Q1 The US retail property market kept pace in Q4. Vacancy and construction activity were relatively unchanged, rents rose modestly and net absorption remained solidly in positive territory. Even though the numbers point to market consistency, the retail industry continues to experience significant change as traditional department stores struggle to adjust to the massive challenge presented by growth in online sales and the demographic shift from baby boomers to…
Q1 2017 Office Market Brief
OFFICE MARKET TAPS THE BRAKES IN Q1 The US office market showed signs of fatigue in the first quarter of 2017. Vacancy was unchanged, rent growth slowed, deliveries were fl at and net absorption, while still positive, declined substantially. Sublease inventory also moved higher. Altogether, it has experts wondering whether the long steady recovery in the office sector is showing signs of fatigue. Major markets including New York City, Los Angeles and even tech-darling San…
Q1 2017 Industrial Market Brief
NET ABSORPTION COOLS – RENTS KEEP MOVING HIGHER After putting in another strong performance to finish the year, the industrial market took a bit of a breather in Q1, but kept moving in the same direction. Supplies of quality space are declining across the country and rents keep moving higher. Construction activity is robust, but concentrated in a handful of major distribution hubs. Supply in more mature markets is running thin as industrial land is…
1Q 2017 Industrial Market Report
Demand Slows In Q1 But Rents Still Are Soaring Net absorption stumbled in the first quarter, posting its biggest three-month loss in seven years. But vacancy rates remained in record-low territory with the market’s momentum reflected in skyrocketing rents that have jumped an average of 16 percent in the last eight quarters. More than 682,036 sq. ft. of space came back on the market in the first quarter, most of which was in the Airport…
1Q 2017 Office Market Report
Rent Growth Slows, Vacancy Hovers Near 10 Percent Demand returned to the overall Orange County office market in the first quarter and rents continued their slow ascent. Countywide, the Q1 vacancy rate hovered just above 10 percent for the fourth consecutive quarter on 249,201 sq. ft. of positive net absorption. Demand was greatest in Santa Ana, Tustin, Anaheim, Cypress and Irvine, where two buildings totaling 212,000 sq. ft. came on the market. Cities with the…