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Orange County is—nearly—leading the Southern California market for industrial rent growth. Second to the Inland Empire, which saw a 20% increase industrial rents, Orange County saw a 10.4% increase in industrial rents, according to research from NAI Capital. The bump beat out Los Angeles, up 7.9%, and Ventura County, up 3.4%, and made the Orange County market the top infill market for industrial rate growth.

“Lack of available land and lack of inventory is pushing the prices,” David Knowlton, EVP at NAI Capital, tells GlobeSt.com. “The economy is doing well, and all of the people that I speak to—developers mainly—are bullish for the next couple of years, which is as far out as I think any one cares to go. So, the spigot is turned on and there is a lot of money looking for impossible to find land, but we are fully built out. That is really driving the increase in pricing and lease rates. It is really a question of supply and demand. When you have a sub 3% vacancy rate with very little construction in the pipeline, it is forcing pricing up.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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