Download Report DEMAND AND RENT GROWTH SLOW; CONCESSIONS RETURN 2023 Q4 INDUSTRIAL REPORT ORANGE COUNTY shows tenant demand eased in 2023 and the pace of rent growth slowed. Nevertheless, more new industrial space was delivered than in any year since 2001, as the countywide vacancy rate remains near its all-time low. Despite 450,825 SF of fourth-quarter tenant expansion, there was nearly 1.6-million-SF of negative net absorption in 2023, the most in 14 years. But quality available space remains well below historical averages as vacancy rates range from 2.6% at the Airport and in North County t ..read more

Download Report DEMAND FOR SPACE CONTINUED EASING IN Q3 2023 Q3 INDUSTRIAL REPORT ORANGE COUNTY shows tenant demand for industrial space continued easing in the third quarter as all four of the county’s submarkets posted a combined 848,736 SF of negative net absorption, the most since Q1 2019. It also was the third straight quarterly contraction, bringing the negative total to 1.8 million SF this year. Countywide, the vacancy rate ticked up 40 basis points to 3% since June, the highest in 10 quarters. And although average rent is up 11% year over year, Lee & Associates’ agents report that ..read more

Download Report DEMAND EASES, RENT GROWTH SEES SIGNIFICANT SLOWING 2023 Q2 INDUSTRIAL REPORT ORANGE COUNTY Demand for Orange County industrial space eased in the first half, and there was significant slowing of the recent double-digit rent growth, which is up 52% overall since the lockdown. Countywide net absorption was negative 562,416 SF in the second quarter and was off 995,957 SF in the first half. It was the weakest quarterly demand since early 2019. Although the vacancy rate gained 60 basis points in the second quarter to settle at 2.6%, the rate remains less than a percentage point from ..read more

Download Report 2023 Q1 INDUSTRIAL REPORT ORANGE COUNTY RECORD-BREAKING RENT GROWTH CONTINUED IN Q1 2023 Q1 INDUSTRIAL REPORT ORANGE COUNTY shows Overall demand for historically tight levels of rental space eased slightly in the first quarter, pushing up the vacancy rate from the all-time low reached in the final three months of last year. Nevertheless, rents continued to climb at a record pace as Orange County ranks statistically among the nation’s most desirable industrial property markets. Countywide, net absorption was negative 818,335 SF in the first quarter, driving up the vacancy rate 4 ..read more

Costa Mesa, CA—February 24, 2023 — Lee & Associates Orange, has sold a freestanding industrial / flex building totaling approximately 19,271 Sq.Ft. for $6,080,000. The property, 3587-3589 Harbor Boulevard, Costa Mesa, CA, has a large fenced yard, 3 ground level doors and 400 Amps, 120/208 Volt of power. Greg Diab, Principal of Lee & Associates’ Orange office, represented the Buyer. About Lee & Associates-Orange Lee & Associates Orange provides the commercial real estate user, owner and developer with real solutions to their business and operational space requirements. We have e ..read more

Download Report SLIDE CONTINUES DUE TO HYBRID SCHEDULES, SLOWER GROWTH 2022 Q4 OFFICE REPORT ORANGE COUNTY Demand for office space continued its overall decline in 2022 as hybrid schedules become the norm and companies shed space amid concerns about the slowing economy and a possible recession. Countywide net absorption was negative 623,844 SF for the year, bringing the total demand deficit to 2.2 million SF since the lockdown. Absorption in the five years before the pandemic averaged 928,413 SF per year. There was 948,955 SF of added available sublease space in 2022, up 1.7 million SF since t ..read more

Download Newsletter I Don’t Want To Be The First But I Certainly Don’t Want To Be The Last We were recently talking to a local investor that we’ve done business with over the years. In fact, we currently have two units available in one of their multi-tenant parks. The conversation was typical market updates, inquiries, tours, general activity type speak. He listened and responded with, “Has anyone dropped the price to get a tenant”? No, we responded. His reply, “Well, I don’t want to be the first but I certainly don’t want to be the last!” The ending comment was to reconnect in two weeks’ time ..read more

Download Report 2022 Q3 INDUSTRIAL REPORT ORANGE COUNTY RECORD HIGH RENTS, LOW VACANCY FAIL TO BLUNT DEMAND 2022 Q3 INDUSTRIAL REPORT ORANGE COUNTY shows rents for industrial space posted a record annual gain in the third quarter while healthy overall tenant growth continued, led by a surge in demand for South County space. Countywide, the vacancy rate remained at a historic low, 2.1%. Net absorption totaled 381,573 SF in Q3 as three of the county’s four submarkets reported tenant expansion. It was most net growth in the last five quarters, according to Lee & Associates’ quarterly survey o ..read more

Download Report 2022 Q3 OFFICE REPORT ORANGE COUNTY DEMAND WEAKENS UNDER LABOR MARKET PRESSURES 2022 Q3 OFFICE REPORT ORANGE COUNTY shows nationally, a white-hot labor market is confounding a return-to-office push among employers that started last year. In samplings of 8,000 workers, Gallup said the desire to work exclusively from home has more than doubled since last fall. Sixty percent said they would change jobs to work remotely. Orange County tenant demand is mirroring U.S. trends posting another loss in the third quarter, as companies continue to balk at pushing post-Covid return-to-offic ..read more

Download Report RENTAL RATES SOAR WITH SUPPLY AT RECORD LOWS Rental rates increased at levels without historical precedent and available space remained at an all-time low as healthy demand continued through the first half. Countywide, average asking rents climbed 20.6% year over year with gains ranging from 14.5% to 24.2% across the county’s four major submarkets. The average rent was $1.46 per SF triple net at the end of Q2. Rents were highest in the South County submarket, averaging $1.58 per SF, and lowest in West County, averaging $1.09 per SF, up 20% from a year ago. By comparison, county ..read more