A New User Enters the Already Tight Industrial Market

Mike Barreiro

Thought the industrial market couldn’t get tighter? Now private-use buyers are showing an increased demand for industrial space in Orange County. These buyers are also willing to pay big for the space. Daum Commercial’s Orange County office recently sold two class-C industrial properties to private users for $379 per square foot—double the average price per square foot in Orange County. Private uses include storage and alternative uses like restaurants, music venues, do parks and automobile storage.

“The main driver for many years has been the close proximity to Newport Beach housing and affluent owners want their personal hobby and storage nearby,” Mike Barreiro, EVP at Daum Commercial who represented the seller in both sales, tells GlobeSt.com. “Since Newport Beach has only two or three industrial-zoned streets inside their municipal lines, the closest alternative is Costa Mesa. Personal use is storage of antique and high-end automobiles, a small car club subculture is emerging here.”