The limited supply of available industrial space in Orange County caused vacancy to decline 60 basis points (bps) year-over-year. Orange County has become an incredibly competitive environment for available space, especially for buildings 50,000 sq. ft. and above, where the current availability rate is 1.4%.
Nearly 2.3 million sq. ft. of construction is in progress in Orange County as developers respond to record low vacancy paired with an insatiable demand from occupiers. North Orange County holds the largest amount of construction activity with over 2.0 million sq. ft. in progress.
The overall asking lease rates shot up to $1.30 per sq. ft., an increase of 26.2% year-over-year. The largest gains in the leasing rates were in the Great Airport Area where the average asking rates reached $1.43 per sq. ft., a 24.3% increase quarter-over-quarter.