Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Byron Foss Foss: “Just as sales prices and average rents are at record highs and more and more tenants are signing early renewals in order to secure their space, average lease terms have also extended.”

IRVINE, CA—Industrial tenants in Orange County are trying to hedge against rising rents and lower vacancy by signing longer-term leases, plus landlords are requiring longer terms in order to stabilize an asset or secure debt, JLL EVP Byron Foss tells GlobeSt.com. According to a recent report from the firm, over the past five years, average lease terms have experienced a 19 % increase, going from an average of 50.7 months in 2012 to 60.5 months in 2017.

The report also revealed that the 2017 average sales price per square foot of $161 has increased by 20% in the past ten years in this market and has surpassed the 2008 market peak of $144. The recent sale of the 181,000-square-foot building at 4150 North Palm St. in Fullerton for $32.6 million ($180 per square foot) demonstrates that owner-occupiers are well-capitalized to purchase properties at prices high enough to compete with investors.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Carrie Rossenfeld

Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.

More from this author

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.