The most costly area for space is the south county area, where developers of manufacturing/distribution space are asking on average $97.57 per sf, and R&D space is going for $119.88 per sf. The airport area has the the second-highest rates, with manufacturing/distribution space going for on average $95.46 per sf, R&D for $86.51, and flex-tech at $186.23 per sf. R&D space is high in the west county as well, where asking prices average $107.73 per sf.

North county has the most new space planned--3.3 million sf--but nothing is presently under construction. Like most of the county, the majority of planned industrial buildings are in the 200,000- to 300,000-sf range. North county has 970,000 sf planned; south county, 450,000 sf; and the airport area, 444,000 sf. Most planned construction in the west county is in the 100,000- to 150,000-sf range.

"There's some big stuff coming, but it's wait and see for now," Holdner says. "You have to go through the entitlement process before breaking ground. And, even after that whole process, demand could change so the product may never come up out of the ground."

On the whole, five million sf of industrial space was leased in the county during the third quarter, and 2.3 million sf was sold.

"It was the second most active quarter of activity in the last five years," Holdner continues. "Inventory is diminishing and activity has been really strong. If this trend continues, you will start seeing a lot of that planned product coming out of the ground."

To request copies of the report, email Holdner at: [email protected].