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OC Industrial Markets Hit Peak Performance Levels
Connect Orange County is just around the corner on July 27th at the Balboa Bay Club. Here’s where to get more information and register.
The second quarter market reports are starting to come in, and a quick comparison of industrial reports from NKF and Cushman & Wakefield reveal that both brokerage houses agree limited supply and consistent demand are pushing rents, sale values and land prices to new highs. The 2Q 2017 vacancy rate remained flat at 1.9%, though still at a historic low level, according to both companies.
Rents climbed to a new high, with NKF reporting averaging asking rates up 7.6% from a year earlier, and quarterly net absorption remaining positive at 44,524 square feet, despite limited supply and lack of new construction.
Cushman & Wakefield notes the lack of available inventory in Orange County is limiting transaction volume and constraining the region’s ability for even greater growth. It points out, after a very remarkable year in 2016 when leasing activity totaled 13 million square feet, leasing activity totaled just 4.8 million square feet at mid-year 2017, 37.4% lower than the 7.6 million square feet leased during the first half of 2016.
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