Orange County industrial real estate market reports
Q1 2023
The Orange County industrial market experienced a slowdown in activity that can be attributed to increased capital costs, ongoing inflation, and companies now on a wait and see approach as the economy approaches difficult times ahead. Market availabilities spiked from 4.1% in Q4 2022 to 5.7% in Q1 2023. Additionally, with over 2.5 msf under construction, additional upward pressures on availabilities may continue.
2.5 msf
Inventory
There is currently 2.5 million square feet of industrial assets under construction in Orange County.
-660k sf
Net absorption
After displaying a strong 4Q 2022 with over 1.0 million square feet of positive net absorption, the Orange County industrial market fell into the red with 660k square feet of negative net absorption in Q1 2023.
$1.62 psf
Asking rent
The first quarter of 2023 saw average asking lease rates reported at $1.62 psf, continuing an upward trend.
5.7%
Availabilities
Market availabilities spiked from 4.1% in Q4 2022 to 5.7% in Q1 2023.
2.3%
Total vacancy
Total vacancies in the first quarter of 2023 concluded at 2.3%, with 1.9% being direct and 0.4% being sublet. This is nearly a full percentage point up from the previous quarter, where vacancies were at 1.4%.
$305.46 psf
Investment sales
Sales volume decreased when compared to Q4 2022, down 63.2% to conclude at $97.4M in the first quarter. Sale prices remain high, ending at $305.46 psf in 1Q 2023.
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