North OC Industrial Market Gets Supply Boost

New supply is coming to the notoriously tight North Orange County industrial market. Panattoni Development Co. is developing a four-building, 232,000-square-foot industrial project on the boarder of Anaheim and Placentia, an industrial market with a near 1% vacancy rate. This is a rare site in Orange County, and the project could accommodate four tenants ranging in size from 47,813 square feet to 69,882 square feet. As a result of the strong demand, the developer expects early and rapid lease-up.

“Industrial development is a challenge in Orange County due to the lack of land availability,” Chris Migliori, EVP at Daum Commercial who brokered the land sale and will serve as the exclusive leasing agent at the property. “The few remaining sites that do become available are often developed into other uses, such as residential. Through taking advantage of the rare opportunity to acquire a 10-acre land parcel, Panattoni is now able to strategically deliver four industrial buildings between 40,000 and 70,000 square feet, the size range posting the lowest vacancies.”

Industrial supply is tight in general in the Orange County market, but the North Orange County area is particularly tight because of its central location and access to freeway systems. “Demand is outpacing supply for industrial in Orange County, with the average vacancy rate at just 1.5% and asking rental rates increasing in the 5-to-6% range year-over-year,” says Migliori. “The North County region, which has traditionally been the county’s tightest submarket for industrial, remains in high-demand and is seeing the county’s lowest vacancy rates at just above 1%. This is due in part to its prime location that offers easy access to Interstate 5, State Routes 91, 57, 55.”