Demand for OC Industrial Continues on Upward Trajectory

The tightness of the Orange County industrial market coupled with rising demand from investors and owner-users alike is driving a steep climb in pricing. Sales volume topped $306 million in the first quarter, and the average asking sale price increased 8.8 percent from the fourth quarter 2020 to $287.65 per square foot, according to CBRE research.

An example of this investor demand is evidenced in two fully leased industrial buildings totaling 122,280 square feet in Huntington Beach that recently sold to Crown Associates Realty Inc. of Beverly Hills.

CBRE’s Jeff Carr negotiated the sale on behalf of the undisclosed buyer. The seller, SARES REGIS Group, was represented by CBRE’s Brad Bierbaum and Gary Stache.

The first property is a 60,891-square-foot building on 2.95 acres at 15301 Springdale St. The two-story property was built in 1978 and features 15,861 square feet of office space, 24-foot clear height and one exterior double truckwell door. It serves as the headquarters for Vispero, a technology provider for the visually impaired.

The second property is a 61,389-square-foot building situated on 3.34 acres at 15461 Springdale St. The two-story property was built in 1976 and includes 26,000 square feet of office space, 22-foot clear height and one exterior truckwell. Applied Computer Solutions, an IT services management company, leases the space for its headquarters.

The properties are located along the coast between Orange County and Los Angles with access to I-405, SR-22 and I-605. The location is near the Ports of Long Beach and Los Angeles, which together rank ninth in the world for container volume.

Pricing for Orange County industrial property has surged during the last year, according to CBRE’s first quarter research. The average asking lease rate increased 4.7 percent since fourth quarter 2020 to $1.12 per square foot, reaching a record high.