Orange County Industrial Investment Forecast
Users and Investors Covet Space Near Ports and Population Centers, Extending Stretch of Strong Performance
Largest submarkets highlight metro's historic fundamentals. Supported by a varied tenant roster of warehouse and distribution center users as well as a diverse manufacturing base that includes electric car and medical device companies Orange County entered 2022 with a scant vacancy rate of 2 percent. For these firms proximity to Los Angeles County ports major freeways or John Wayne International Airport is paramount with submarket vacancy rates reflecting these preferences. Home to 40 percent of market inventory North County began this year with low-1 percent availability while vacancy in the Airport Area was at 2.5 percent. Tight conditions warrant development although only North County will register noteworthy speculative completions this year. These circumstances will steer most expanding users to an extremely limited number of available spaces enabling Orange County to end 2022 as the nation's second tightest market.