MARKET TRENDS
- Vacancy increased by 90 basis points (bps) in the fourth quarter to 3.8%, while net absorption was negative for the fourth consecutive quarter tallying -672,175 square feet (sf). Much of this negative movement stemmed from the South County.
- Despite 2023 economic challenges and anadditional 4.4 million square feet (msf) of space being added to inventory, Orange County industrial has one of the lowest vacancies in Southern California.
- As market conditions have plateaued, asking rental rate for industrial space have held at a historical high recording $1.76 NNN in 4Q, a 1.0% decrease from one quarter ago and a 14.6% increase from last year.