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OC Industrial Vacancy Still Tight Despite Deliveries

IRVINE, CA—Due to the lack of available land for new development, more occupiers are expected to turn to older buildings that can be significantly renovated to provide the functionality needed today, JLL’s Jared Dienstag tells GlobeSt.com.

Jared Dienstag Dienstag: “Orange County is quickly becoming a key market for e-commerce firms to expand to, which has been one of the primary drivers of growth for the local industrial market.”

IRVINE, CA—Due to the lack of available land for new industrial development, more occupiers are expected to turn to older buildings that can be significantly renovated to provide the functionality needed today, JLL senior research analyst Jared Dienstag tells GlobeSt.com. According to the firm’s Q4 industrial report for Orange County, only 222,737 square feet of OC industrial space is under construction in a market with 1% vacancy. There were 59 large blocks (100,000 square foot or greater) of available space in 2009, 39 in 2012, 16 in 2016, and the number is anticipated to decline to 10 in 2017. In addition, 2016 finished with the highest year-end average rental rate on record.

We spoke with Dienstag about the report’s takeaways and the remedy for so little space under construction in this market.

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Carrie Rossenfeld

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

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