Last Quarter a Hot One in Industrial Real Estate
Orange County’s industrial real estate sector sizzled last quarter, as the amount of industrial property sold or leased grew faster than at any time in the last five years, a real estate services firm reported Wednesday.
The county’s industrial base in the second quarter grew 15.5% to 5.2 million square feet from 4.5 million square feet a year ago, CB Richard Ellis said.
The firm also found that office vacancy rates declined to 9.09% from 10.97% a year ago, as demand continued to outpace supply. Rental rates surged 18% to $1.85 per square foot, and double-digit rate increases also are anticipated through the end of the year, the firm said.
The retail market also remained strong, the firm found, as vacancy rates remained low and new construction continued. There are 11 retail properties with a total of 2 million square feet under construction in the county, with several more projects scheduled to break ground later this year. The average asking lease rate was $1.45 per square foot, up 3 cents from a year ago.