What the Low Prime Logistics Yield Means for OC

Desper: “We have strong tenant/occupier demand, low vacancy rates and a diminishing supply of product. Consequently, we don’t expect dramatic changes in 2017.”

NEWPORT BEACH, CA—Orange County will continue to be very competitive, with buyers paying up for class-A distribution space and creating demand that will continue to push lease rates up for occupiers, CBRE EVP Dave Desper tells GlobeSt.com. According to a recent report from the firm, the rapid rise of e-commerce has pushed investment yields on prime logistics properties across the globe close to record lows, and the 10 individual markets with the lowest prime yields in the world include the Inland Empire and Los Angeles/Orange County at 4.25%.

Desper focuses on industrial/R&D corporate headquarter facilities in Orange County. We spoke with Desper about what the prime logistics yield means for Orange County and what could make the pendulum swing in the opposite direction.