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2/07/25
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In this brief update, JLL reviews recent activity for OC industrial space and how the market compares with LA and the Inland Empire.
• Orange County has resiliently maintained the highest industrial asking rents in Southern California during the recent period of demand normalization over the past year. As the spread of asking rents between Orange County and neighboring markets kept widening, Orange County began to lose large logistic tenants, which are usually very cost-sensitive.
• In Q3 2024, IDC Logistics exited a 448k sf warehouse in Buena Park upon lease expiration in August but renewed in Los Angeles in September. Following suit in Q4, an apparel distributor vacated a 280k sf lease in Huntington Beach and consolidated to a warehouse nearly twice the size but cheaper on effective rent in Inland Empire. These two move-outs caused the largest negative absorptions of the quarters respectively.
• Despite the high rental rates, Orange County continues to attract advanced manufacturers, particularly aerospace companies, which have been driving the industrial leasing activity in Orange County throughout 2024.
• Recently, Hyundai decided to relocate the headquarters of their flying taxi division from Washington D.C. to Irvine. They doubled their presence in Orange County in Q4 2024 to facilitate the relocation. Furthermore, as of January 2025, another aerospace tenant has already secured the building vacated by the apparel distributor at the end of 2024.
This update provided by Chi Qi, Senior Research Analyst, JLL
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