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OC Industrial Finishes 2021 with One of Nation’s Tightest Vacancy Rates
The Orange County industrial market had a strong 2021, Cushman & Wakefield reported, with leasing. activity totaling 10.8 million square feet, 5.2% higher than 2020’s total. Countywide occupancy gains totaled 1.8 million square feet for 2021, dropping the vacancy rate 50 basis points year over year to end 2021 at 1.5%.
While the vacancy rate did increase slightly from third-quarter 2021, due to Ricoh vacating 500,000 square feet in Tustin, Orange County remains one of the tightest industrial markets in the nation. “Having a sub-2.0% vacancy rate for all of 2021 enabled landlords to push asking rents to new highs,” according to Cushman & Wakefield.
The overall asking rate for Orange County increased 31.1% or $0.33 year-over-year to $1.39 per square foot per month on a net basis. Warehouse and distribution buildings ended the year with asking rates of $1.29 psf/mo, an increase of 29.0% Y-O-Y.
- ◦Lease
