Transportation, Prop. 13 Top Industrial Tenant Concerns

Arambulo: “Despite the continued strong demand, a lack of available inventory continues to limit transactional volume and therefore inhibit growth.”

ORANGE COUNTY, CA—Focus on last mile delivery, as well as the vastly different operating expenses in California due to Prop. 13 reassessments, are two of the biggest issues on Orange County industrial tenants’ minds, Cushman & Wakefield‘s Tina Arambulo, industrial re and Kevin Turner tell GlobeSt.com. With strong leasing and occupancy numbers for the third quarter, according to a recent report from the firm, this sector shows no signs of slowing down. We spoke with Arambulo and Turner about any concerns in the market and takeaways from this research.

GlobeSt.com: What are some of the latest concerns in the Orange County industrial market?   Arambulo: With industrial vacancy at sub 2% in Orange County, such a tight market also means users have relatively few alternatives to meet their occupancy needs—Orange County remains one of the most constrained markets when it comes to industrial supply. Further, this market has significant barriers to entry for development of new industrial product. As such, despite the continued strong demand, a lack of available inventory continues to limit transactional volume and therefore inhibit growth.