Orange County’s Multifamily Market Continues to Grow

Orange County’s multifamily housing market remained exceptionally strong throughout 2019. The average asking rent closed the quarter at $2,055 per unit, up 3.3 percent from the fourth quarter of 2018. This was the highest asking rent on record, up 34.5 percent from the prior peak reached in the third quarter of 2008. The Central submarket saw the largest year-over-year rental rate increase, with the asking rent there rising 3.8 percent to $1,920 per unit. This quarter, the Irvine submarket …

January 31, 2020California, Market Reports, Multifamily, Western, Western Market Reports

Orange County’s Industrial Market Stays Healthy Going Into 2020

Demand for Orange County industrial space remained healthy in 2019 as vacancy rates ended another year in record-low territory at 2.9 percent, fueled by a strong second-half net absorption.[caption id="attachment_254350" align="alignright" width="100"] Scott Seal, Lee & Associates[/caption] The movement in the second half of 2019 was largely a result of the Fed’s decision to keep interest rates low, which provided assurance for buyers that had been on the fence. The attractive …

January 25, 2020California, Industrial, Market Reports, Western, Western Market Reports

Orange County’s Retail Transaction Volume, Consistency Will Continue in 2020

Retail transaction volume was strong in January as the shorter 2019 holiday season created a tight window for year-end closings, residual transactions pushed into the New Year and gave 2020 an early jump on what should be another great year. Total transactions in 2020 should continue to build from the big start. The massive transaction volume from the second half of 2019 — more specifically, a glut of fourth-quarter sellers — has produced a wave of investors needing to complete 1031 …

January 24, 2020California, Market Reports, Retail, Western, Western Market Reports

Inland Empire Retail Market Remains Steady Despite Big Box Closures

Southern California’s Inland Empire region has enjoyed a sustained period of growth in the retail real estate sector. Good spaces in quality centers are leasing quickly. Although new developments have slowed, there is still about 1.2 million square feet of new space under construction. These are all top-tier projects that will very much enhance the communities where they are being built. Projects include a Sprouts-anchored center in Eastvale, a Grocery Outlet/Planet Fitness center in …

December 6, 2019California, Market Reports, Retail, Western, Western Market Reports

Los Angeles, Orange County Look to Inland Empire for Industrial Needs

[caption id="attachment_254397" align="alignright" width="100"] John D. Boyer, NAI Capital[/caption] The Inland Empire industrial market signaled that it may be transitioning toward slower growth in the second half of the year. Leasing volume declined sharply to nearly 7.8 million square feet, which is the lowest volume seen in a single quarter since 2011. New construction deliveries pushed the average rent to the highest level on record — $0.86 per square foot. Of the 13.7 million square …

November 30, 2019California, Industrial, Market Reports, Western, Western Market Reports

The Inland Empire Is a Hotbed of Multifamily Development

The Inland Empire has experienced a significant uptick in multifamily development in the past decade. We are currently seeing a healthy shift toward more units being developed, which is driven by substantial regional economic growth in the years following the recession. Multifamily development has grown from less than 2,000 units annually in 2009 to more than 5,000 units developed this year. The Inland Empire has one of the highest imbalances of housing in comparison to significant population …

November 29, 2019California, Market Reports, Multifamily, Western, Western Market Reports

Landlords Emphasize Top-Quality Amenities, Services in OC’s Office Market

Employers throughout Orange County continue to seek ways to attract and retain the best and brightest talent as unemployment dropped to 2.4 percent in the second quarter, below both the California and U.S. rates. That, in turn, has resulted in landlords reinvesting in their properties, providing creative and flexible work spaces, and offering a variety of onsite amenities and service that help companies fulfill that goal. Landlords continue to seek out creative competitive advantages by …

November 23, 2019California, Market Reports, Office, Western, Western Market Reports

Orange County Tenants, Landlords Embrace the New Retail Norm

Despite the headwinds facing retail real estate, including the continued rise of ecommerce, the Orange County retail market remains resilient. Statistics are favorable. Vacancy is low at 3.7 percent and average market rent is $32.29 per square foot, up 1.15 percent from last year. Cap rates remain nearly 200 basis points below the national average, signaling buyer sentiment that OC retail is a relatively safe haven. Ground-up development is slow and selective, shoring up demand and keeping …

November 22, 2019California, Market Reports, Retail, Western, Western Market Reports

Orange County Braces for Rent Control, Continued Affordability Issues

Orange County’s multifamily market fundamentals remain some of the strongest in the country as local real estate investors brace for new state-wide rent control policies beginning Jan. 1, 2020. There will undoubtedly be an education process for landlords regarding this new law and how it may impact the valuation of multifamily in the future, but the long-term stability of the overall apartment market looks bright.[caption id="attachment_254410" align="alignright" width="100"] Matthew J. …

November 16, 2019California, Market Reports, Multifamily, Western, Western Market Reports

San Diego Retail Development Continues — Strategically

Whether it’s existing properties, new development, redevelopment or a repositioning effort, the key to success in San Diego’s retail market is to focus on customer experience. You have to make it attractive for them to come out from behind their computer screens, go outside, get some fresh air, look a total stranger in the eye and be social. The market is dominated by the coastal areas between Little Italy and Carlsbad. Primary core centers that are well located and occupied with strong …

September 28, 2019California, Market Reports, Retail, Western, Western Market Reports