The Orange County industrial market has recently seen steady real estate value allowing rental rates to remain stable. While the market continues to stabilize, several properties are testing the waters by being added to the sales market. One industrial property that adds to the available inventory for sale is the 52,248 square foot distribution and warehouse asset located on 4.51 acres of land at 625 Columbia St. in Brea. The price is listed as $24 million or approximately $459 per square foot.
The marketing effort is led by the Voit Real Estate Services team of Executive Vice President Seth Davenport, Senior Vice President Sam Kwak and Vice President Selden McKnight. The property is currently owned by a Fullerton-based entity affiliated with Sonette, LLC, according to public records.
The two-story class C industrial building was originally constructed in 1988. The marketing materials reveal a freestanding building that includes over 11,000 square feet of office space. The warehouse component has a clear 24’ height, six dock high loading doors and one ground floor loading door. The property also includes parking, two acres of excess land and has a previously approved permit for a 23,040 square foot warehouse expansion.
The asset has immediate access to California State Routes 57 and 90, with further easy reach to US Interstate Highways 5 and 605.
The Orange County industrial market continues to grapple with limited supply in the third quarter of 2023, although signs of stabilizing trends are emerging after a prolonged period of heightened demand. The Kidder Mathews’ 3Q 2023 Orange County Industrial Market Report states that while there is a possibility that demand has eased somewhat, the primary high-demand areas remain fiercely competitive. Positioned among the top 50 industrial locations in the U.S., Orange County boasts the third lowest direct vacancy rate at 2.6 percent, indicating overall stability and potential for future rent escalation within this submarket.
The report adds that some submarkets are witnessing rent hikes, with Orange County showing an average rent of $1.73 per square foot, surpassing rates in the Inland Empire and Los Angeles markets. Rates are expected to hold firm due to limited space options for companies servicing the Orange County market, fostering a robust market for lease renewals.
Kidder Mathews expects the Orange County industrial market to grow in the near term. The persistent demand for industrial space is expected to endure, along with the low vacancy rate and increasing rents. However, potential stumbling blocks such as escalating interest rates and economic uncertainties loom over the market.
