VOIT REPORTS POSITIVE NET ABSORPTION FOR THE EIGHTH CONSECUTIVE QUARTER IN ORANGE COUNTY INDUSTRIAL MARKET
Lowest vacancy rate reported since Q1 2009
Lease Rates and Sale Prices on the Rise
Orange County, CA – April 20, 2012 – (RealEstateRama) — In the first quarter of 2012, the Orange County industrial market posted 362,299 square feet of positive net absorption, giving the market 3.8 million square feet of positive net absorption since the second quarter of 2010, according to a First Quarter Market Report by Voit Real Estate Services. In addition, the quarter ended with a vacancy rate of 4.87 percent – one of the lowest figures recorded since the first quarter of 2009.
“The Orange County industrial market is in recovery mode, and all numbers indicate that the market will continue to improve as 2012 progresses,” said Jerry Holdner, Vice President of Market Research for Voit. “Increasing occupancy will drive lease rates up, and ongoing demand for OC industrial space will fuel growth in sale prices as well.”
Industrial lease rates continue to rise in Orange County, according to Voit’s report. The average asking triple-net lease rate came in at $0.55 per square foot per month at the end of the first quarter – two cents higher than the market bottom of $0.53 seen in the first quarter of 2011.
Availability also continued its downward trend in 2012’s first quarter. Direct and sublease space being marketed in Orange County ended the quarter at 8.13 percent, a drop from the 8.29 percent seen in the previous quarter and a decrease of more than 12.5 percent from 2011’s first quarter rate of 9.32 percent. As availability continues to descend, both lease rates and sale prices will increase, according to Holdner.
“Orange County is a resilient market, and demand remains high for industrial space here,” said Holdner. “Availability of product for sale is especially tight in the 30,000 to 100,000 square foot space, and with increasing demand in the market, sale prices will continue to climb.”
The average asking sales price in the first quarter of 2012 was $138.10 per square foot, a 9.19 percent increase from the previous year’s first quarter price of $126.56.
According to Holdner, major factors including job creation and overall economic stability will be crucial in sustaining the recent growth of Orange County’s industrial market over the next two to three years.
About Voit Real Estate Services
Voit Real Estate Services is now a 10-office commercial real estate firm that, through its brokerage and asset services professionals working together, provides strategic property solutions tailored to clients’ needs. Combining 40 years of expertise in brokerage, investment advisory, financial analysis, market research, asset management, tenant advisory and property management services, Voit provides clients with forward looking strategies that create value for their assets and portfolios.
Voit is a privately held, debt-free firm that has successfully navigated numerous market cycles since 1971 and currently employs more than 250 people. Voit has owned, developed and managed over 50 million square feet of commercial real estate, participated in $1.4 billion of construction projects and completed over $36 billion in brokerage transaction volume. Further information is available at www.voitco.com.
Contact:
Jenn Quader/ Judith Brower
Brower, Miller & Cole
(949) 955-7940
JQuader (at) browermillercole (dot) com
