COMMERCIAL PROPERTY
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Office, industrial markets, continued ...
Industrial market
Voit Real Estate Services’ Commercial Brokerage division directed
the sale of the 47,815-square-foot Safari Technology Park in Irvine in May.
The average asking selling price fell to $152.05 per square foot this quarter, down from $154.10 in the last quarter.
The
region currently has no industrial space under construction, due to a
lack of demand, falling availability, high land prices and increasing
construction costs.
The vacancy rate hit 5.5 percent during the
quarter, up from 4 percent last year. The North Orange County submarket
– the largest of all submarkets in the region, according to Voit – has
the lowest vacancy rate, coming in close to 5 percent. The area
contains nearly half of all industrial buildings in Orange County.
Much
like in the office market, the uptick in negotiations between tenants
and landlords for concessions has brought the average asking triple net
lease rate down 22 percent from last year to 62 cents per square foot
per month, according to Holdner.
“The industrial market has not
reached the bottom, but we are starting to see a slowdown in the amount
of available space being added per quarter as experienced in the office
market,” Holdner explains. “Sales activity showed a significant
increase over last quarter, posting 1.26 million square feet of
activity compared to the first quarter’s 538,421 square feet,
demonstrating increased interest in industrial properties changing
hands in Orange County.”
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Related headlines
'OC METRO Minute,' July 7: Gap between asking, bidding prices decreases for office, industrial markets
Sales of Orange County businesses fall 49 percent
'OC METRO Minute,' July 6: clean tech venture investments up 12 percent
Office, industrial markets, continued ...
Industrial market
Voit Real Estate Services’ Commercial Brokerage division directed
the sale of the 47,815-square-foot Safari Technology Park in Irvine in May.
The average asking selling price fell to $152.05 per square foot this quarter, down from $154.10 in the last quarter.
The region currently has no industrial space under construction, due to a lack of demand, falling availability, high land prices and increasing construction costs.
The vacancy rate hit 5.5 percent during the quarter, up from 4 percent last year. The North Orange County submarket – the largest of all submarkets in the region, according to Voit – has the lowest vacancy rate, coming in close to 5 percent. The area contains nearly half of all industrial buildings in Orange County.
Much like in the office market, the uptick in negotiations between tenants and landlords for concessions has brought the average asking triple net lease rate down 22 percent from last year to 62 cents per square foot per month, according to Holdner.
“The industrial market has not reached the bottom, but we are starting to see a slowdown in the amount of available space being added per quarter as experienced in the office market,” Holdner explains. “Sales activity showed a significant increase over last quarter, posting 1.26 million square feet of activity compared to the first quarter’s 538,421 square feet, demonstrating increased interest in industrial properties changing hands in Orange County.”
<< PREVIOUS PAGE
Related headlines
'OC METRO Minute,' July 7: Gap between asking, bidding prices decreases for office, industrial markets
Sales of Orange County businesses fall 49 percent
'OC METRO Minute,' July 6: clean tech venture investments up 12 percent
