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OC Industrial: Highest Rents, Lowest Vacancies in SoCal
Orange County achieved the lowest industrial vacancy and the highest rents in Southern California by the end of 2023, JLL senior research analyst Chi Qi reported. By the fourth quarter, the average asking rent for Orange County properties rose to $1.77 per square foot, edging out Los Angeles.
Moreover, although sublease availabilities spiked across SoCal in early 2023, Orange County was the only market to see sublease declines in the year’s second half.
Total Orange County industrial leasing volume for 2023 showed a marginal 1% growth year-over-year, despite the summer slowdown. Seventy percent of transactions were for less than 50,000 square feet, and new leases’ share of leasing volume declined from 63% in 2022 to 43% 2023, reflecting the impact of the slowdown in summer.
Over 3.5 million square feet of industrial space was added to Orange County’s inventory in 2023, surpassing the combined completions of the recent four years, according to JLL.
- ◦Lease
