Direct net absorption was positive for the third consecutive quarter, posting 216,939 square feet in first quarter 2021, according to Kidder Mathews’ latest report. The acceleration of e-commerce sales, emerging biotech/biomed industries and continued conversions of older industrial assets in Orange County kept vacancies low. In fact, direct vacancies decreased 3 percent from the prior year to end the quarter at 2.4 percent.
Leasing activity declined 28 percent year-over-year to 2.7 million square feet. Requirements between 10,000 square feet and 25,000 square feet experienced the most leasing activity with more than 760,000 square feet leased. The increase in activity may be a result of tenants adjusting business operations and relocating to smaller properties, the report surmises.
Although overall rent growth may have softened in the past year, average asking rents continue to report at all-time highs, concluding at $1.03 per-square-foot on a triple-net basis, says Kidder Mathews.
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
Email the Author
Reach over 250,000 Commercial Real Estate Professionals with Connect
Connect CRE reaches the top commercial real estate players nationwide and across all property types, offering you a variety of ways to showcase your team, your expertise and your brand to CRE decision makers.
The home for CRE news and everything you need to stay informed on deals, trends, and transactions, providing a platform to get your brand in front of your target audience.
Daily CRE Emails
Reaching over 150,000 inboxes across the nation every day, Connect’s Daily News emails provide advertising opportunities specific to your market.
Bi-Weekly Property Sector Emails
Focus your advertising on emails dedicated to your property sector and stay visible to current and potential clients.
Position your team as experts in your field with content created by Connect’s editorial team and published on Connect’s news emails. Showcase your intelligence and broaden your reach.