Orange County industrial real estate market report
Q2 2026
The Orange County industrial market remains in a period of recalibration as occupiers continue adapting to broader economic conditions. Q2 net absorption turned negative, driven by a few sizeable move-outs in South County and the Airport Area, though 308 leasing transactions this quarter signal resilient underlying demand. Vacancy held stable as direct vacancies were offset by sublet reductions. On the capital markets front, buyer-seller sentiment is improving with narrowing bid-ask spreads, highlighted by BKM's $1.8 billion portfolio acquisition, which included 70 Orange County assets. Asking rents edged down to $1.44/SF, though moderating downward pressure suggests the market may be approaching rent stabilization.
Net absorption
Q2 2026 marked a reversal with negative absorption of 130 ksf, primarily driven by few sizeable move-outs in South County and Airport Area.
Asking rates
Asking rents ended the quarter at $1.44/SF as downward pressures moderate, signaling a slowdown in rental rate declines and potential market stabilization.
Vacancies
Vacancy rates remained stable in Q2 2026 as increases in direct vacancies were quickly offset by sublet reductions.
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