ORANGE COUNTY, CA—With firms reporting strong absorption, minutevacancy rates and increasing rental rates, fundamentals for theindustrial sector in Orange County are strong. Oneof the reasons this sector has recovered so well and continues tobe healthy is because inventory never got out of hand, experts tellGlobeSt.com.

“Industrial was never overbuilt like office,” says KurtStrasmann, senior managing director ofCBRE. “Vacancies are at historic lows. Mostnoteworthy is we're seeing 5% to 10% annual rental growth, and thiswill continue.”

Strasmann adds that broad-based tenant demand fromretail and logistics users, inaddition to straight distribution andmanufacturing, have contributed to the sector'shealth. “We track 51 markets in the US, and Orange County has thesecond-lowest vacancy rate in the nation. Vacancy was kept incheck, and ground-up development opportunities in Orange Countyhave been very difficult to find.”