Orange County Industrial Market Report
2023 Investment Forecast
Orange County Maintains the Nation’s Lowest Vacancy Rate Amid
the Largest Local Supply Wave in 20 Years
Land constraints prompt conversion activity. Entering this year, vacancy reached a historic trough of 1.5 percent, the lowest rate among all major U.S. markets. The metro’s proximity to the ports of Long Beach and Los Angeles, coupled with its access to more than 17 million consumers within a 90-minute drive, is spearheading local space demand. However, the scarcity of land primed for development generally restricts the ability to add new supply. Developers have begun to convert outdated industrial and office properties into modern logistics facilities to overcome these obstacles and accommodate the pent-up demand that exists for available space. The Goodman Logistics Center stands as a prime example. The site was recently able to secure the county’s second-largest lease in the past two decades, with Samsung committing to over 1 million square feet last September. While similar projects are expected to lift annual supply additions to a 20-year high in 2023, sustained tenant demand will keep availability under 2 percent. This will preserve Orange County’s standing as the tightest industrial market in the nation.