Panattoni Development Company is expanding its reach across Orange County. Most recently, public records show the developer acquired an 89,888 square-foot office building in Tustin for $19.28 million, or about $214 per square foot.
The two-story building is located at 14351 Myford Road and was sold to the company by the Orange County Research Center, which also occupies the property.
Founded in Sacramento in 1986, Panattoni is an industrial developer working in markets across the United States as well as the United Kingdom and Canada. Since its inception, the company has grown its portfolio, developing 544 million square feet across 310 cities.
While no specific development plans have been announced for its newest acquisition, the property is directly adjacent to a 9.9 acre lot that is currently being developed by Panattoni. Located at 14451 Myford Road, the completed distribution facility will total 219,694 square feet and is expected to be completed in August of 2022.
The property is also located near a variety of other commercial office and industrial assets, with nearby properties including the Jamboree Business Center, the Tustin Commerce Center and the Tustin Business Center, among others. In addition, the building is just off Interstate 5 and a short commute to the John Wayne Airport.
In general, Orange County’s industrial market has grown significantly over the past several years. In the last quarter alone, industrial vacancy across Orange County has dropped to just 2.2 percent, according to a first quarter Orange County industrial market report from Newmark. At the same time, net absorption in Orange County remained positive for the eighth consecutive quarter in a row, with nearly 263 million square feet of industrial product being absorbed in the first quarter alone. As more product is absorbed in the region, rental rates also have increased to $1.42 per square foot during the first quarter of 2022. In comparison, rental rates in the first quarter of 2021 averaged $1.16 per square foot.
