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Developable Land at a Premium, But Demand Will Continue to Outpace Supply Next Year

ORANGE, CA-Grubb & Ellis' forecast for 2001 expects most projects in the office and industrial markets to be infill in nature, reusing land with existing product on it.

By Joel Cone | Updated on December 19, 2000

ORANGE, CA-Based on better than expected performance this year, combined with a strong and diverse local economy and the lowest unemployment in Southern California in recent years, Grubb & Ellis is forecasting that the Orange County market will remain strong for all product types in 2001–with some caveats.

Across the board, the biggest concern for brokers next year is the ever-decreasing amount of developable land for new product countywide. Instead, infill projects that reuse the land will dominate the landscape, offering new sales and lease opportunities for brokers to capitalize on. Still, the competition for those spaces will be intense, with rents continuing their upswing and vacancy rates remaining low.

In the office sector, Jack McNutt, a SVP based in the Newport Beach office, believes the lull in the market of the past 30 days will dissipate, with things returning to normal after the first of the year. “The market will continue. It won’t be robust, but it will continue to clip along nicely,” he says.

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