It is time to update as we wrap up summer In Orange County the pace of play for companies and big announcements waivers a bit this quarter as recession talks intensify.
Second quarter reports are out for our entire company. You can access our National Market Report here. Macro breakdown for industrial and office. Detailed market breakdown included as well. Love our new reports. So much in there for so many. The 30,000 ft overview of the nation is below:
Of the nation’s 390 metros surveyed, 216 posted positive net absorption in the second quarter and were led by Dallas/Ft. Worth with 11.6 million SF, Southern California’s Inland Empire at 10.1 million SF and 5.5 million SF in Atlanta. Chicago at 4.9 million SF and Las Vegas’ 3.4 million SF round out the top five. Among all markets, those with tenants shedding the most space in the first half of 2019 all are on the West Coast. Los Angeles posted 2 million SF of negative net absorption, followed by Orange County (-1.8 million SF), East Bay/Oakland (-1.2 million SF) and Portland (-1.2 million SF).
Mid-year tenant demand for industrial space increased 73.3 million SF but was down 51% compared to the first half of 2018, which is shaping up as the apparent peak in the current economic cycle’s rate of industrial growth. Despite flagging demand and easing rent growth, vacancies remain near record lows.
Net absorption in the first half of 2019 totaled 35 million SF with 23.6 million SF of growth coming in Q2. More than 96 million SF was absorbed in 2018 with about 60 million of tenant growth coming in the second half. Deliveries to date, 44 million SF, are nearly equal to the first half of last year, but the volume of projects underway through June totaled 186.5 million SF – a record high in this cycle. That is a 10% increase from the in Q4 2018 and an 18% gain over the average of the previous three years.
Healthy tenant expansion returned in the second quarter but fell short of offsetting the overall market’s lackluster start to the year. Overall, the office market is tight. But unless demand improves dramatically in the second half, 2019 will post the lowest net absorption in four years just as construction pipelines in several metros swell with new projects.
Here is a quick recap of my current listings and links to all follow up brochures, information, floor plans, etc.:
- 330 S Hale Ave, Fullerton, CA – 45,888 – 90,336 SF sublease to move in November 1. We’re focused on the 45,888 SF portion.
- 26784 Vista Terrace, Lake Forest, CA – 7,019 SF R&D building for sale. In escrow.
- 8707 Sorensen Ave, Santa Fe Springs, CA – 21,000 SF building freestanding building in Mid Counties available September 1.
- 2752 Walnut, Tustin, CA – 18,574 SF industrial building in the Irvine Area available September 1.
- 803 Luke St, Irving, TX – A 2,500 SF industrial unit available September 1.
- 2401 N Glassell St, Orange, CA – A 33,333 SF second story office as part of the Volt Corporate Park.
- 15111 Whittier Blvd, Whittier, CA – The Whittier Financial Center offering office, creative office and medical suites from 1,000 – 6,200 SF.
- 2681 Walnut Ave, Tustin, CA – 5,019 SF second story office space
- 30240 Rancho Viejo Rd, San Juan Capistrano, CA – Suite C is 1,000 SF and Suite G is 1,070 SF. Office or medical uses allowed.
- 789 W 20th St, Costa Mesa, CA – 2,300 SF freestanding office building.
- 232 Avenida Fabricante, San Clemente, CA – 1,021 SF office space available within industrial condo.
- 9277 Research Dr, Irvine, CA – 656 SF shared office space within coworking environment.
- 7077 Orangewood Ave, Garden Grove, CA – 700 SF bullpen office sublease.
- 15141 Whittier Blvd, Whittier, CA – Whittier Medical Center offers 1,200 – 6,800 SF of office and medical space.
- 3300 E South St, Lakewood, CA – Lakewood Medical Building, Suite 301B is 1,506 SF and Suite 305 is 1,624 SF.
- 601 W 19th St, Costa Mesa, CA – 2,520 SF fully built out medical suite ready to occupy.
- 27462 Portola Parkway, Foothill Ranch, CA – 2,000 – 10,000 SF medical space built out to suit. Also, 2,000 SF dental suite.
- 500 S Anaheim Hills Rd, Anaheim, CA – Anaheim Hills Medical Building, Suite 232 is 2,254 SF and Suite 242 is 1,953 SF.
- 5475 E La Palma Ave, Anaheim, CA – Anaheim Hills Health Plaza, Suite 206 is 1,130 SF.
- 15651 Imperial Highway, La Mirada, CA – Imperial Medical Plaza, Suite 102 is 2,109 SF and Suite 103 is 2,786 SF.
- 20001 Beach Blvd, Huntington Beach, CA – Shared space on 400-600 SF with Seaside Dental.
- 1100 Folsom St, San Francisco, CA – 2,776 SF commercial space ideal for a fitness operator.
- 19816 Walnut Dr, Walnut, CA – $12,000,000 land purchase of a portion of the Royal Vista Golf Course land assemblage.
I’m pleased to report I’ve been accepted into the Society of Industrial and Office Realtor organization. They rigorously go through your transaction history, production history, references and education. SIOR is where the top players in every firm congregate so that they can expand their high level network to better help their customers globally. I’m happy to say I’ve got another arrow in my quiver to help now. You can learn more here.
Let me know when you are ready to discuss your next real estate project. Looking forward to it! Thank you.