Orange County industrial leasing vacancy rates rose to 6.1%, up from 4.1% a year ago, providing a bit more opportunity for tenants who had previously faced limited options. Time on market has increased and decision-making time is extending. That said, we are still closing leases, especially for properties that are well-located and well-priced.
On the sales side, inventory remains limited. Owner occupants are in a better position to compete for properties as investment appetite has cooled due to the disconnect between capitalization rates and the cost of borrowing. It is still a seller’s market but with more parity.
