In a move that underscores its unwavering confidence in the Southern California industrial market, Rexford Industrial Realty has added another trophy asset to its growing portfolio. The real estate investment trust (REIT) recently closed on a $94.25 million deal for a 279,000-square-foot ($338 per square foot) warehouse in Fullerton, Orange County, according to public records reviewed by The Registry.
The acquisition, coming hot on the heels of Rexford’s blockbuster $1 billion purchase of 48 industrial properties from Blackstone, demonstrates the firm’s aggressive strategy to capitalize on the region’s robust demand for warehouse space.
The Fullerton property, located at 1911 East Rosslynn Avenue, was sold by American Realty Advisors, which had held the asset since 2004. Rexford’s pricing of around $338 per square foot is consistent with its previous Blackstone deal, highlighting the continued strength of the industrial market in Southern California.
Rexford’s confidence is well-founded. Southern California’s industrial market has been a bright spot in the real estate landscape for the past few years. The surge in e-commerce, fueled by the pandemic, has driven demand for warehouse space to unprecedented levels over the last few years, pushing vacancy rates to historic lows.
However, Orange County’s industrial real estate market has been cooling down after a pandemic-fueled boom. Vacancy rates are rising, leasing activity is slowing, and the power dynamics are shifting from landlords to tenants, according to recent reporting by The Registry. This is due to a surge in available warehouse space, driven by both new construction and an increase in sublease offerings.
Despite this shift, average asking rents remain high, though slightly below recent peaks. Demand for large, modern warehouses persists, especially from e-commerce and logistics companies. While the market is more challenging for landlords and investors, it presents opportunities for tenants, who now have more choices and negotiating power. Overall, the long-term outlook for Orange County’s industrial real estate sector remains positive, supported by the county’s strong business environment and strategic location.
