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Orange County industrial leasing activity has seen a slow down in velocity, especially for larger boxes above 100,000 square feet, thanks to the extreme lack of space. It has become a common problem in a market that is seeing record demand and a vacancy below 3%. Ecommerce drove the market activity with nearly 140,000 square feet of net absorption for the year, according to a recent report from JLL. However, all-in, the market was down 66,369 square feet in net absorption.

“In general, ecommerce has been driving demand on an occupancy basis,” Zach Niles, managing director at JLL, tells GlobeSt.com. “Overall, leasing velocity is down because vacancy is so low and there is nothing to absorb for class-A assets,” Zach . When we look back at 2018 and all of the leasing transactions over 100,000 square feet for class-A space, there are only six total transactions. The take away is that there is not a lack of demand but rather a true lack of supply.”

Kelsi Maree Borland

Kelsi Maree Borland is a freelance writer and editor living in Los Angeles whose work has appeared in such publications as Travel + Leisure, Angeleno and Los Angeles Magazine.

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