Figures
Orange County Industrial Figures Q1 2025
Uncertainty continues as rising vacancy counteracts strong leasing activity
April 10, 2025 5 Minute Read
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- The Orange County (OC) industrial market struggled in Q1 2025 as rising vacancy and modest asking rate decline counteracted strong leasing activity and new construction starts.
- Negative absorption was driven by increased time-on-market as available spaces went vacant following lease expirations.
- Decision-makers continued to show caution as there was little urgency to commit to space. Occupiers leveraged pricing uncertainty and increasing vacancy to negotiate favorable lease and sale terms.
- New leasing activity was strong in Q1 2025 as gross activity reached 2.4 million sq. ft., with five deals above 100,000 sq. ft. signed in 2025.
- Asking lease rates fell by $0.02 quarter-over-quarter to $1.66 NNN per sq. ft. per month, continuing the trend of gradual rent decline in Orange County.
- Industrial development in Orange County showed improvement as 326,000 sq. ft. delivered and 922,000 sq. ft. of space broke ground.