MARKET TRENDS
- Vacancy remained reduced at the start of the year at 1.9%, a 20-basis-point drop from one year ago and will remain low despite three new projects breaking ground in 1Q totaling 350,600 square feet (sf).
- Large tenant move-in’s included Sprouts occupying 336,968 sf in Fullerton and Epson America occupying 233,705 sf in Huntington Beach. However, overall absorption recorded just 149,036 sf due to several vacancies in the North County submarket.
- Due to looming economic uncertainty, asking rental rates for industrial space is stabilizing at an average of $1.46 per square foot in Q1 2023, a $0.01 increase from one year ago.