Orange County warehouse sector remains favorable despite geopolitics uncertainties

The overall vacancy rate for warehouse properties in Orange County, Calif., decreased 10 basis points from the first quarter, ending the second quarter at 2.3 percent, reported Cushman & Wakefield.

A year-over-year increase in industrial vacancy in the region of 40 basis points is attributed to a handful of large move-outs and warehouse completions that delivered vacant in the first quarter. Orange County continues to be one of the tightest industrial markets in the country, with 3 percent vacancy for warehouse properties. Overall asking rates for warehouse product finished the quarter with an average of $0.86 per square foot per month. The average effective rent for class A space of more than 50,000 square feet has jumped 46.3 percent since year-end 2014 and will continue to trend up due to lack of supply.

Owing to a number of large deals in the second quarter, leasing activity was up 17 percent at mid-year, compared with the same period a year ago, according to C