INDUSTRIAL MARKET REPORT - AIR CRE · 2019-03-12 · verified by members of the Advisory oards for the market area. Xceligent is a leading provider of verified commercial real estate

2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved

INDUSTRIAL MARKET REPORT

Orange County 4th Quarter 2016

Produced in partnership with


2

Table of Contents and Methodology/Map 2-3

Market Overview 4-5

Statistics by Market 6

Vacancy Rates & Asking Rates 7-8

Leasing & Absorption 9

New Construction 10

Industrial Advisory Board Members 11

Xceligent Team 12

The Orange County tracked set consists of an inventory of buildings considered to be competitive by the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for the market area.

Xceligent is a leading provider of verified commercial real estate information which assists real estate

professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,

buy and develop commercial properties.

Table of Contents/

Methodology of Tracked Set

Tracked Inventory (Industrial)

The total square feet of all existing single and multi tenant industrial properties greater than

10,000 sf.

Direct Vacant (sf)

The total of the vacant square footage in a building that is being marketed by an agent

representing the landlord.

Net Absorption

The net change in physically occupied space from quarter to quarter, expressed in square

feet.

Sublease (sf) Space that is offered for lease by a current tenant, or his agent, within a property. Whether

the tenant is paying rent or not, the space is considered vacant only if it is unoccupied.

Total Available (sf)

All of the available leasable space within a building, whether it is occupied or vacant, for

direct lease or sublease space.

Total Vacant (sf)

The total of all of the vacant square footage within a building, including both direct and

sublease space.


3

Industrial Market Map


4

Overview

Orange County Industrial Overview

The Orange County industrial market continues to see strong tenant demand by absorbing 818,504 square feet (sf) in the fourth quarter of 2016 and 2.2 million sf year-to-date.

OC North had the strongest showing of the 4 submarkets, posting 437,101 sf of net absorption, lowering the submarkets vacancy to 1.1%.

Development activity remains light throughout the county with only 272,737 sf underway.

With a 109,987 sf lease in Santa Ana, Signature Party Rentals leased the largest block of space in the fourth quarter.

# of Bldgs Inventory (sf) Total

Available (sf) Total

Vacant (sf) Total

Vacancy Rate (%) Total Quarterly

Net Absorption (sf) YTD Total Net

Absorption (sf)

OC North 2,881 107,422,931 3,110,931 1,185,869 1.1% 437,101 1,625,513

OC Airport Area 2,216 65,538,622 3,020,004 1,294,035 2.0% 72,690 -197,162

OC West 1,182 40,649,679 1,805,221 101,232 0.2% 87,887 644,944

OC South 1,167 39,474,137 2,220,117 1,002,436 2.5% 220,826 126,827

Overall 7,446 253,085,369 10,156,273 3,583,572 1.4% 818,504 2,200,122

# of Bldgs Inventory (sf) Direct

Available (sf) Direct

Vacant (sf) Direct

Vacancy Rate (%) Direct Quarterly

Net Absorption (sf) YTD Direct Net Absorption (sf)

OC North 2,881 107,422,931 2,648,735 1,164,234 1.1% 455,280 1,637,150

OC Airport Area 2,216 65,538,622 2,837,683 1,294,035 2.0% 51,176 -203,578

OC West 1,182 40,649,679 1,742,762 97,682 0.2% 87,887 530,040

OC South 1,167 39,474,137 1,982,156 994,895 2.5% 219,022 109,204

Overall 7,446 253,085,369 9,211,336 3,550,846 1.4% 813,365 2,072,816

# of Bldgs Inventory (sf) Available

Sublease (sf) Sublease

Vacant (sf) Sublease

Vacancy Rate (%) Sublease Quarterly

Absorption (sf) YTD Sublease Net

Absorption (sf)

OC North 2,881 107,422,931 462,196 21,635 0.0% -18,179 -11,637

OC Airport Area 2,216 65,538,622 182,321 - 0.0% 21,514 6,416

OC West 1,182 40,649,679 62,459 3,550 0.0% 0 114,904

OC South 1,167 39,474,137 237,961 7,541 0.0% 1,804 17,623

Overall 7,446 253,085,369 944,937 32,726 0.0% 5,139 127,306


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Orange County Industrial Overview

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016

Historical Vacancy Rate & Net Absorption

Absorption Vacancy

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016

Historical Vacancy Rates by Use

Flex/R&D Whse/Mfg

(250,000)

(50,000)

150,000

350,000

550,000

750,000

950,000

4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016

Historical Net Absorption by Use

Flex/R&D Whse/Mfg


6

Statistics by Market

# of Bldgs Inventory (sf) Total

Vacant (sf) Sublease

Vacant (sf) Vacancy Rate (%)

Total Quarterly Absorption (sf)

YTD Total Net Absorption (sf)

OC Airport Area 2,216 65,538,622 1,294,035 0 2.0% 72,690 -197,162

Costa Mesa 346 8,662,026 48,749 0 0.6% 12,596 18,898

Fountain Valley 171 4,161,805 3,989 0 0.1% 1,250 26,536

Irvine 517 17,650,839 378,957 0 2.1% -13,515 -160,196

Newport Beach 24 719,256 0 0 0.0% 0 2,500

Santa Ana 968 26,972,009 379,065 0 1.4% 59,524 132,697

Tustin 190 7,372,687 483,275 0 6.6% 12,835 -217,597

OC North 2,881 107,422,931 1,185,869 21,635 1.1% 437,101 1,625,513

Anaheim 1,304 43,021,127 307,464 3,456 0.7% 22,843 810,008

Brea 270 12,159,239 652,801 0 5.4% -31,613 6,852

Buena Park 196 13,100,488 73,231 18,179 0.6% -63,704 12,798

Fullerton 326 17,477,680 51,966 0 0.3% 467,847 687,806

La Habra 82 3,211,178 15,654 0 0.5% 0 6,106

Orange 461 12,129,366 53,994 0 0.4% 44,140 5,025

Placentia 169 4,330,613 16,059 0 0.4% -13,170 55,851

Yorba Linda 73 1,993,240 14,700 0 0.7% 10,758 41,067

OC South 1,167 39,474,137 1,002,436 7,541 2.5% 220,826 126,827

Aliso Viejo 58 2,039,164 5,695 0 0.3% 0 46,641

Foothill Ranch 40 2,958,575 72,501 0 2.5% 0 -72,501

Irvine Spectrum 446 18,427,708 453,089 0 2.5% 269,909 251,149

Laguna Hills 88 1,580,726 0 0 0.0% 7,085 16,661

Laguna Niguel 26 576,170 0 0 0.0% 0 0

Lake Forest 196 5,944,729 359,268 7,541 6.0% -38,730 -91,287

Mission Viejo 66 1,352,167 37,776 0 2.8% 2,112 -13,029

Rancho Santa Margarita 77 2,536,694 4,870 0 0.2% 0 4,448

San Clemente 113 2,668,839 45,098 0 1.7% 4,589 -719

San Juan Capistrano 57 1,389,365 24,139 0 1.7% -24,139 -14,536

OC West 1,182 40,649,679 101,232 3,550 0.2% 87,887 644,944

Cypress 95 6,225,914 30,332 0 0.5% 0 217,822

Garden Grove 327 12,306,264 34,631 0 0.3% -3,441 3,245

Huntington Beach 509 13,363,563 26,025 3,550 0.2% 22,040 312,726

La Palma 18 1,838,149 0 0 0.0% 70,200 111,574

Los Alamitos 91 2,736,003 8,498 0 0.3% -912 -8,498

Seal Beach 10 841,945 0 0 0.0% 0 0

Stanton 67 1,312,993 1,746 0 0.1% 0 994

Westminster 65 2,024,848 0 0 0.0% 0 7,081

Overall 7,446 253,085,369 3,583,572 32,726 1.4% 818,504 2,200,122


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Vacancy Rates & Asking Rates

Vacancy Rate % Weighted Average Asking Rent (NNN)

4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016

OC Airport Area 1.7% 1.6% 2.1% 2.1% 2.0% $0.75 $0.79 $0.83 $0.87 $0.90

Whse/Mfg 1.3% 1.3% 1.9% 1.9% 1.8% $0.72 $0.75 $0.78 $0.84 $0.86

Flex/R&D 3.2% 2.8% 2.9% 2.8% 2.8% $1.16 $1.22 $1.17 $1.22 $1.18

OC North 2.1% 2.2% 1.5% 1.3% 1.1% $0.64 $0.66 $0.69 $0.80 $0.77

Whse/Mfg 2.0% 2.1% 1.4% 1.2% 1.0% $0.58 $0.62 $0.66 $0.75 $0.73

Flex/R&D 2.4% 2.8% 2.0% 1.9% 1.7% $0.88 $0.90 $1.09 $1.09 $1.10

OC South 2.9% 2.8% 2.7% 3.1% 2.5% $1.06 $1.03 $1.06 $1.14 $1.13

Whse/Mfg 1.8% 1.9% 1.8% 2.0% 2.2% $0.87 $0.89 $0.92 $0.91 $0.90

Flex/R&D 4.8% 4.4% 4.5% 5.0% 3.1% $1.28 $1.19 $1.23 $1.36 $1.37

OC West 1.8% 1.5% 0.7% 0.5% 0.2% $0.69 $0.68 $0.76 $0.78 $0.76

Whse/Mfg 2.1% 1.7% 0.8% 0.4% 0.1% $0.68 $0.65 $0.74 $0.75 $0.73

Flex/R&D 0.5% 0.6% 0.4% 0.8% 0.7% $0.76 $0.77 $0.82 $0.94 $0.95

Grand Total 2.1% 2.0% 1.7% 1.7% 1.4% $0.78 $0.81 $0.83 $0.92 $0.91


8

Vacancy Rates & Asking Rates

2.0%

1.1%

2.5%

0.2%

OC Airport Area OC North OC South OC West

Vacancy Rate by Market

$0.90

$0.77

$1.13

$0.76

OC Airport Area OC North OC South OC West

Weighted Average Asking Rent by Market (NNN)

$0.80

$0.57

$1.80

$1.60

$1.26

$0.80

$-

$0.50

$1.00

$1.50

$2.00

Flex/R&D Whse/Mfg

Asking Rent Range by Use (NNN)


9

Leasing & Absorption

Largest Leases & Absorption Changes

Property Name Occupied or Vacated (sf)

Tenant Name Submarket Specific Use

3100 S Susan St, Santa Ana 109,987 Signature Party Rentals OC Airport Area Whse/Mfg

1400 S Manhattan Ave, Fullerton 102,288 Berger Transfer & Storage, Inc. OC North Whse/Mfg

6485 Oak Canyon Rd, Irvine Spectrum 100,352 Ramp Logistics OC South Whse/Mfg

2930 S Fairview St, Santa Ana 71,363 Tailgate Printing, Inc. OC Airport Area Whse/Mfg

3172 Nasa St, Brea 50,600 Precision Logistics OC North Whse/Mfg

17112 Armstrong Ave, Irvine 48,200 Irvine Scientific Sales Company OC Airport Area Flex/R&D

2610 S Birch St, Santa Ana (Unit A) 47,500 One Stop Parts Source OC Airport Area Whse/Mfg

3101 Enterprise St, Brea -39,960 Kapco Global OC North Whse/Mfg

6400 Regio Ave, Buena Park -44,027 Newport Ag Resources, LLC OC North Whse/Mfg

16661 Jamboree Rd, Irvine -66,000 Balda C. Brewer, Inc. OC Airport Area Whse/Mfg

Top Transactions

Property Name Sale Price Sold (sf) Buyer Seller Submarket Specific Use

6300 Regio Ave, Buena Park $41,087,000 361,476 6300 Regio LLC Georgia Pacific OC North Whse/Mfg

1400 S Allec St, Anaheim $18,215,000 121,225 Bixby Land 1400 Allec Street LLC OC North Whse/Mfg

5325 E Hunter Ave, Anaheim $13,539,000 108,266 BPP Pacific Industrial LBA OC North Whse/Mfg


10

New Construction

50,000

181,069

41,668

-

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

OC Airport Area OC North OC West

Current Construction by Market


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Industrial Advisory Board Members

Orange County

CBRE Ben Seybold

Nick Spatafore

Colliers International Clyde Stauff

Chuck Wilson

Cushman & Wakefield Rick Ellison

Randy Ellison

Daum Commercial Steve Pearson

Irvine Company Sue Lyle

JLL Louis Tomaselli

Steve Wagner

Lee & Associates Dan Kruse

Jim Snyder

Brock Stryker

NAI Capital JR Williamson

NGKF Greg Osborne

Voit Seth Davenport


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This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we

have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to

independently confirm its accuracy. For more information, please contact :

Xceligent Orange County Team

Produced in partnership with

Matt Nelson Director of Analytics 714-509-1404 [email protected]

Monique Ebel Director of Research 714-538-8432 [email protected]

Brandon Koepnick Director of Client Services 714-267-9171 [email protected]

Tim Hayes Executive Director - AIR 213-687-8777 [email protected]

Michael Foxworthy VP of National Accounts 805-807-6291 [email protected]

Brad Hauser VP of Analytics - Western Region 281-782-3944 [email protected]

mailto:[email protected]






Documents

INDUSTRIAL MARKET REPORT - AIR CRE · 2019-03-12 · verified by members of the Advisory oards for the market area. Xceligent is a leading provider of verified commercial real estate