2020 State of the Market - Industrial & Office - OC/LA Counties
OC / LA Industrial Market Update
Orange County's industrial sector faces supply constraints, with inventory smaller than the Inland Empire and L.A. County. Several significant projects are in development:
The former Kimberly Clark Site in Fullerton will deliver "three +/-300,000 SF Class A warehouses" in 2021, offering flexibility for last-mile e-commerce operations.
A massive former J.C. Penney location in Buena Park represents "the only 1,000,000 SF availability in all of OC/LA County" and will undergo subdivision to match typical user preferences of 200,000-300,000 square feet.
Shea Business Center is launching a multi-size project in Santa Ana near the 55 freeway, with "500,000 SF being delivered in March 2020" and units starting at 24,165 square feet.
New small multi-tenant spaces are emerging after a 15-year hiatus. Los Patrones Business Park in Rancho Mission Viejo will deliver units "from 1,824 SF up to 8,383 SF" in May 2020.
OC / LA Office Market Update
Office vacancies remain below historical averages at 10.0%, supported by strong leasing activity. WeWork's contraction has slowed new leasing but is expected to normalize.
Major projects underway include Spectrum Terrace Phase 2 by the Irvine Company, featuring approximately 114,000 square feet per building, and the Press—a "380,856 SF creative office complex" converting the former LA Times warehouse near South Coast Plaza, expected to deliver March 2020.
The Source H2O development will provide "69,968 SF of creative office" with completion anticipated April 2020.