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California  + Orange County  + Industrial  | 
Kidder Mathews Report: Orange County Industrial Sector Continues to Shine

Report: OC Industrial Sector Continues to Shine

Orange County direct vacancy rates for industrial properties in the 4th quarter remained at a paltry 1.1%, as e-commerce operators demanded facilities near Los Angeles County ports and prospective workers, according to a new report from Kidder Mathews. Reflecting that demand, the average lease rate of $1.58-per-square-foot climbed 32% year-over-year.

Meanwhile, investor demand for industrial product in the county has persisted, despite record-high prices of $322.79-per-square-foot in Q4 and a sliding market cap rate in an era of high interest rates. The shortage of suitable land continues to drive institutional investors to properties that are well-leased and prepared for redevelopment.

Kidder’s near term outlook calls for more of the same, as the retail trade sector continues to thrive, and is the driving force behind job growth in the e-commerce, transportation and utility industries. Orange County has experienced extraordinary rent increases in 2022, with a net absorption of 1.4 million square feet.

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Kidder Mathews Research

About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.

  • ◦Economy
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