Orange County industrial real estate market reports
Q1 2022
Inventory
Just under 260K SF of industrial space was delivered in 1Q 2022 with over 2.2M SF under construction. The highly anticipated Goodman Logistics Center is on track to be delivered in 3Q 2022 and includes four state-of-the-art logistic facilities at a total of 1.5M SF.
Net Absorption
Positive gains in net absorption continued in Orange County with over 321K SF in 1Q 2022. This makes it the 11th straight quarter of positive absorption and the second largest gain since the pandemic began in 1Q 2020 when the market reported over 1.0M SF of positive absorption.
Direct Asking Rent
Direct asking lease rates continue to spike across Orange County, concluding the quarter at $1.33/SF on a triple-net basis, an increase of 22.02% year-over-year.
Availabilities
Total available industrial space declined in 1Q 2022, falling by over 810K SF since 3Q 2020 to 5.9M SF market-wide.
Vacancy
Since the pandemic began 1Q 2020, direct vacancies have decreased by 80 basis points (bps) to 2.2%. At the end of the first quarter, 2.9M SF of direct space and 238K SF of sublease space remains vacant, respectively.
Investment Sales
8 properties traded hands in 1Q 2022 at an average sales price of $291.42/SF. Although the number of sale transactions have decreased, it is not attributed to any lack of demand, and it is common for the beginning of the year to start off at a slower pace. In addition, underperforming office campuses as of late have been in high demand as developers look to redevelop these campuses into newer state-of-the-art logistic facilities.
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