Vacancy Up, Rents Down in OC Industrial Market

ANAHEIM, CA-The Orange County Industrial market presents a mixed bag to tenants and investors, according to a new report by Voit Commercial Brokerage, which shows that the total amount of activity rose during the second quarter, but the market overall weakened as more space emptied out and rents declined.

Voit lists the industrial availability rate at 10.64% for the quarter, up 61% from the year-ago figure of 6.59% and an increase of just under 1% from the first quarter this year.

“This increase of supply could be explained by our slower economy coupled with an increase of new sublease space hitting the market and weak demand for buildings over 75,000 square feet,” the Voit report says. It notes the average asking triple net lease rate in the second quarter was 56 cents, an 8.2% drop in since the second quarter of 2001 figure of $0.61.