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ORANGE COUNTY, CA—Orange County is a proven infill market for industrial and logistics space with few development opportunities, making quality product very limited and causing rents to continue to rise here, CBRE's senior managing director Kurt Strasmann and first VP Nick Spatafore tells GlobeSt.com. According to a recent report CBRE Research, Los Angeles and Orange County prime industrial and logistics rents climbed 9.2% year over year, putting them in sixth place after Manchester/Liverpool and ahead of Atlanta.

The rising rents, however, are not deterring tenants from entering this market and signing long-term leases. For example, as GlobeSt.com previously reported, Primary Color Systems Corp. recently signed a 187,481-square-foot, 10-year, light-manufacturing industrial lease at a corporate headquarters facility in Cypress, CA. Spatafore, together with Wade Tift of Jones Lang LaSalle Inc., represented the tenant, while Rick Ellison of Cushman & Wakefield represented landlord Cypress Distribution Center Inc.

In discussing the main cause of rising industrial and logistics rents in Orange County, Strasmann says, “The main reason for the increase in rents is the steady and consistent demand from multiple industries, coupled with a very limited amount of available supply.” He adds the barriers to entry make it very difficult for buyers and tenants to find a large supply of available product. “The result is that valuation continues to appreciate driven by a shortage of spaces for users to occupy.”