Big Block Industrial's Hard to Find
Snapped at the recent NAIOP Directors dinner in San Diego: Boeing Realty Co enterprise leader-acquisitions and dispositions Stephane Wandel and JLL senior managing director Louis Tomaselli. Orange County's industrial market has been much the same over the past two to three years, Louis tells us, with the availability of high-quality, modern space, particularly in large blocks, being very limited. Tenants are looking at neighboring markets, such as the Inland Empire, to satisfy specific requirements.
Louis adds that the sweet spot for OC industrial has become 100k SF to 200k SF. "While large users have been forced to either renew at existing locations or explore opportunities in outside markets, mid-size users have become more competitive, and are driving up demand," he says. The growing competition among users and investors is translating into rising rental rates and sale prices.
