Snapshots

Investors continue to dominate sales activity but at a lesser rate while owner/user activity remains steady

Due to Orange County’s close proximity to high density populations and to the ports of Long Beach and Los Angeles, it is a prime location for e-commerce and logistic companies.

October 23, 2019
  • Due to Orange County’s close proximity to high density populations and to the ports of Long Beach and Los Angeles, it is a prime location for e-commerce and logistic companies. Since the e-commerce boom began earlier in this current decade, it has attracted a great deal of investors because of this. 
  • However, investment activity has slowed while activity has remained steady for owner/user sales. Looking at properties 50,000 square feet and greater, the proportion of owner/user sales has increased. 
  • Investment sales in Orange County have dominated activity especially in its core industrial markets: Airport Area and North County. Still, investment activity has slowed by 40 percent from 2014-2016 compared to 2017-2019. Owner/users have remained in steady-state since they are usually more tied to an area. But, because investors focus on North Orange County and the Airport Area, owner/users have less competition from investors in non-core markets (South and West County). In 2014-2016, they accounted for 16 percent of all sales while in 2017-2019, they have accounted for 27 percent of sales. 
  • Investors continue to dominate transaction activity but at a lesser rate (by number of deals). In terms of square feet, they had a record quarter thanks to the 1.2 million s.f. acquisition of the Albertson’s Distribution Center in Irvine in a sale-leaseback deal. 

Source: JLL Research

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