industrial market report - air cre · 2019-03-12 · verified by members of the advisory oards for...
TRANSCRIPT
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
INDUSTRIAL MARKET REPORT
Orange County 4th Quarter 2016
Produced in partnership with
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
2
Table of Contents and Methodology/Map 2-3
Market Overview 4-5
Statistics by Market 6
Vacancy Rates & Asking Rates 7-8
Leasing & Absorption 9
New Construction 10
Industrial Advisory Board Members 11
Xceligent Team 12
The Orange County tracked set consists of an inventory of buildings considered to be competitive by the brokerage community. All buildings within the competitive tracked set have been reviewed and verified by members of the Advisory Boards for the market area.
Xceligent is a leading provider of verified commercial real estate information which assists real estate
professionals, appraisers, owners, investors and developers that make strategic decisions to lease, sell,
buy and develop commercial properties.
Table of Contents/
Methodology of Tracked Set
Tracked Inventory (Industrial)
The total square feet of all existing single and multi tenant industrial properties greater than
10,000 sf.
Direct Vacant (sf)
The total of the vacant square footage in a building that is being marketed by an agent
representing the landlord.
Net Absorption
The net change in physically occupied space from quarter to quarter, expressed in square
feet.
Sublease (sf) Space that is offered for lease by a current tenant, or his agent, within a property. Whether
the tenant is paying rent or not, the space is considered vacant only if it is unoccupied.
Total Available (sf)
All of the available leasable space within a building, whether it is occupied or vacant, for
direct lease or sublease space.
Total Vacant (sf)
The total of all of the vacant square footage within a building, including both direct and
sublease space.
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
3
Industrial Market Map
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
4
Overview
Orange County Industrial Overview
The Orange County industrial market continues to see strong tenant demand by absorbing 818,504 square feet (sf) in the fourth quarter of 2016 and 2.2 million sf year-to-date.
OC North had the strongest showing of the 4 submarkets, posting 437,101 sf of net absorption, lowering the submarkets vacancy to 1.1%.
Development activity remains light throughout the county with only 272,737 sf underway.
With a 109,987 sf lease in Santa Ana, Signature Party Rentals leased the largest block of space in the fourth quarter.
# of Bldgs Inventory (sf) Total
Available (sf) Total
Vacant (sf) Total
Vacancy Rate (%) Total Quarterly
Net Absorption (sf) YTD Total Net
Absorption (sf)
OC North 2,881 107,422,931 3,110,931 1,185,869 1.1% 437,101 1,625,513
OC Airport Area 2,216 65,538,622 3,020,004 1,294,035 2.0% 72,690 -197,162
OC West 1,182 40,649,679 1,805,221 101,232 0.2% 87,887 644,944
OC South 1,167 39,474,137 2,220,117 1,002,436 2.5% 220,826 126,827
Overall 7,446 253,085,369 10,156,273 3,583,572 1.4% 818,504 2,200,122
# of Bldgs Inventory (sf) Direct
Available (sf) Direct
Vacant (sf) Direct
Vacancy Rate (%) Direct Quarterly
Net Absorption (sf) YTD Direct Net Absorption (sf)
OC North 2,881 107,422,931 2,648,735 1,164,234 1.1% 455,280 1,637,150
OC Airport Area 2,216 65,538,622 2,837,683 1,294,035 2.0% 51,176 -203,578
OC West 1,182 40,649,679 1,742,762 97,682 0.2% 87,887 530,040
OC South 1,167 39,474,137 1,982,156 994,895 2.5% 219,022 109,204
Overall 7,446 253,085,369 9,211,336 3,550,846 1.4% 813,365 2,072,816
# of Bldgs Inventory (sf) Available
Sublease (sf) Sublease
Vacant (sf) Sublease
Vacancy Rate (%) Sublease Quarterly
Absorption (sf) YTD Sublease Net
Absorption (sf)
OC North 2,881 107,422,931 462,196 21,635 0.0% -18,179 -11,637
OC Airport Area 2,216 65,538,622 182,321 - 0.0% 21,514 6,416
OC West 1,182 40,649,679 62,459 3,550 0.0% 0 114,904
OC South 1,167 39,474,137 237,961 7,541 0.0% 1,804 17,623
Overall 7,446 253,085,369 944,937 32,726 0.0% 5,139 127,306
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
5
Orange County Industrial Overview
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016
Historical Vacancy Rate & Net Absorption
Absorption Vacancy
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016
Historical Vacancy Rates by Use
Flex/R&D Whse/Mfg
(250,000)
(50,000)
150,000
350,000
550,000
750,000
950,000
4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016
Historical Net Absorption by Use
Flex/R&D Whse/Mfg
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
6
Statistics by Market
# of Bldgs Inventory (sf) Total
Vacant (sf) Sublease
Vacant (sf) Vacancy Rate (%)
Total Quarterly Absorption (sf)
YTD Total Net Absorption (sf)
OC Airport Area 2,216 65,538,622 1,294,035 0 2.0% 72,690 -197,162
Costa Mesa 346 8,662,026 48,749 0 0.6% 12,596 18,898
Fountain Valley 171 4,161,805 3,989 0 0.1% 1,250 26,536
Irvine 517 17,650,839 378,957 0 2.1% -13,515 -160,196
Newport Beach 24 719,256 0 0 0.0% 0 2,500
Santa Ana 968 26,972,009 379,065 0 1.4% 59,524 132,697
Tustin 190 7,372,687 483,275 0 6.6% 12,835 -217,597
OC North 2,881 107,422,931 1,185,869 21,635 1.1% 437,101 1,625,513
Anaheim 1,304 43,021,127 307,464 3,456 0.7% 22,843 810,008
Brea 270 12,159,239 652,801 0 5.4% -31,613 6,852
Buena Park 196 13,100,488 73,231 18,179 0.6% -63,704 12,798
Fullerton 326 17,477,680 51,966 0 0.3% 467,847 687,806
La Habra 82 3,211,178 15,654 0 0.5% 0 6,106
Orange 461 12,129,366 53,994 0 0.4% 44,140 5,025
Placentia 169 4,330,613 16,059 0 0.4% -13,170 55,851
Yorba Linda 73 1,993,240 14,700 0 0.7% 10,758 41,067
OC South 1,167 39,474,137 1,002,436 7,541 2.5% 220,826 126,827
Aliso Viejo 58 2,039,164 5,695 0 0.3% 0 46,641
Foothill Ranch 40 2,958,575 72,501 0 2.5% 0 -72,501
Irvine Spectrum 446 18,427,708 453,089 0 2.5% 269,909 251,149
Laguna Hills 88 1,580,726 0 0 0.0% 7,085 16,661
Laguna Niguel 26 576,170 0 0 0.0% 0 0
Lake Forest 196 5,944,729 359,268 7,541 6.0% -38,730 -91,287
Mission Viejo 66 1,352,167 37,776 0 2.8% 2,112 -13,029
Rancho Santa Margarita 77 2,536,694 4,870 0 0.2% 0 4,448
San Clemente 113 2,668,839 45,098 0 1.7% 4,589 -719
San Juan Capistrano 57 1,389,365 24,139 0 1.7% -24,139 -14,536
OC West 1,182 40,649,679 101,232 3,550 0.2% 87,887 644,944
Cypress 95 6,225,914 30,332 0 0.5% 0 217,822
Garden Grove 327 12,306,264 34,631 0 0.3% -3,441 3,245
Huntington Beach 509 13,363,563 26,025 3,550 0.2% 22,040 312,726
La Palma 18 1,838,149 0 0 0.0% 70,200 111,574
Los Alamitos 91 2,736,003 8,498 0 0.3% -912 -8,498
Seal Beach 10 841,945 0 0 0.0% 0 0
Stanton 67 1,312,993 1,746 0 0.1% 0 994
Westminster 65 2,024,848 0 0 0.0% 0 7,081
Overall 7,446 253,085,369 3,583,572 32,726 1.4% 818,504 2,200,122
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
7
Vacancy Rates & Asking Rates
Vacancy Rate % Weighted Average Asking Rent (NNN)
4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016 4Q 2015 1Q 2016 2Q 2016 3Q 2016 4Q 2016
OC Airport Area 1.7% 1.6% 2.1% 2.1% 2.0% $0.75 $0.79 $0.83 $0.87 $0.90
Whse/Mfg 1.3% 1.3% 1.9% 1.9% 1.8% $0.72 $0.75 $0.78 $0.84 $0.86
Flex/R&D 3.2% 2.8% 2.9% 2.8% 2.8% $1.16 $1.22 $1.17 $1.22 $1.18
OC North 2.1% 2.2% 1.5% 1.3% 1.1% $0.64 $0.66 $0.69 $0.80 $0.77
Whse/Mfg 2.0% 2.1% 1.4% 1.2% 1.0% $0.58 $0.62 $0.66 $0.75 $0.73
Flex/R&D 2.4% 2.8% 2.0% 1.9% 1.7% $0.88 $0.90 $1.09 $1.09 $1.10
OC South 2.9% 2.8% 2.7% 3.1% 2.5% $1.06 $1.03 $1.06 $1.14 $1.13
Whse/Mfg 1.8% 1.9% 1.8% 2.0% 2.2% $0.87 $0.89 $0.92 $0.91 $0.90
Flex/R&D 4.8% 4.4% 4.5% 5.0% 3.1% $1.28 $1.19 $1.23 $1.36 $1.37
OC West 1.8% 1.5% 0.7% 0.5% 0.2% $0.69 $0.68 $0.76 $0.78 $0.76
Whse/Mfg 2.1% 1.7% 0.8% 0.4% 0.1% $0.68 $0.65 $0.74 $0.75 $0.73
Flex/R&D 0.5% 0.6% 0.4% 0.8% 0.7% $0.76 $0.77 $0.82 $0.94 $0.95
Grand Total 2.1% 2.0% 1.7% 1.7% 1.4% $0.78 $0.81 $0.83 $0.92 $0.91
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
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Vacancy Rates & Asking Rates
2.0%
1.1%
2.5%
0.2%
OC Airport Area OC North OC South OC West
Vacancy Rate by Market
$0.90
$0.77
$1.13
$0.76
OC Airport Area OC North OC South OC West
Weighted Average Asking Rent by Market (NNN)
$0.80
$0.57
$1.80
$1.60
$1.26
$0.80
$-
$0.50
$1.00
$1.50
$2.00
Flex/R&D Whse/Mfg
Asking Rent Range by Use (NNN)
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
9
Leasing & Absorption
Largest Leases & Absorption Changes
Property Name Occupied or Vacated (sf)
Tenant Name Submarket Specific Use
3100 S Susan St, Santa Ana 109,987 Signature Party Rentals OC Airport Area Whse/Mfg
1400 S Manhattan Ave, Fullerton 102,288 Berger Transfer & Storage, Inc. OC North Whse/Mfg
6485 Oak Canyon Rd, Irvine Spectrum 100,352 Ramp Logistics OC South Whse/Mfg
2930 S Fairview St, Santa Ana 71,363 Tailgate Printing, Inc. OC Airport Area Whse/Mfg
3172 Nasa St, Brea 50,600 Precision Logistics OC North Whse/Mfg
17112 Armstrong Ave, Irvine 48,200 Irvine Scientific Sales Company OC Airport Area Flex/R&D
2610 S Birch St, Santa Ana (Unit A) 47,500 One Stop Parts Source OC Airport Area Whse/Mfg
3101 Enterprise St, Brea -39,960 Kapco Global OC North Whse/Mfg
6400 Regio Ave, Buena Park -44,027 Newport Ag Resources, LLC OC North Whse/Mfg
16661 Jamboree Rd, Irvine -66,000 Balda C. Brewer, Inc. OC Airport Area Whse/Mfg
Top Transactions
Property Name Sale Price Sold (sf) Buyer Seller Submarket Specific Use
6300 Regio Ave, Buena Park $41,087,000 361,476 6300 Regio LLC Georgia Pacific OC North Whse/Mfg
1400 S Allec St, Anaheim $18,215,000 121,225 Bixby Land 1400 Allec Street LLC OC North Whse/Mfg
5325 E Hunter Ave, Anaheim $13,539,000 108,266 BPP Pacific Industrial LBA OC North Whse/Mfg
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
10
New Construction
50,000
181,069
41,668
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
OC Airport Area OC North OC West
Current Construction by Market
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
11
Industrial Advisory Board Members
Orange County
CBRE Ben Seybold
Nick Spatafore
Colliers International Clyde Stauff
Chuck Wilson
Cushman & Wakefield Rick Ellison
Randy Ellison
Daum Commercial Steve Pearson
Irvine Company Sue Lyle
JLL Louis Tomaselli
Steve Wagner
Lee & Associates Dan Kruse
Jim Snyder
Brock Stryker
NAI Capital JR Williamson
NGKF Greg Osborne
Voit Seth Davenport
2016 Q4 Market Trends © 2017 by Xceligent, Inc. All Rights Reserved
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This information has been obtained from sources believed reliable. While we do not doubt its accuracy, we
have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to
independently confirm its accuracy. For more information, please contact :
Xceligent Orange County Team
Produced in partnership with
Matt Nelson Director of Analytics 714-509-1404 [email protected]
Monique Ebel Director of Research 714-538-8432 [email protected]
Brandon Koepnick Director of Client Services 714-267-9171 [email protected]
Tim Hayes Executive Director - AIR 213-687-8777 [email protected]
Michael Foxworthy VP of National Accounts 805-807-6291 [email protected]
Brad Hauser VP of Analytics - Western Region 281-782-3944 [email protected]