Owner-User Industrial Sales in Orange County Are Rebounding
Owner-user sales in Orange County are rebounding and a recent 57,088-square-foot industrial building transaction in Huntington Beach proves that.
Crosse Partners acquired the building at 5302 Rancho Road from Oxford Properties last week in a deal represented by JLL.
JLL?s Steve Wagner, Zach Niles, Brendan Brady, and Makenna Peter represented the seller, Oxford Properties. The buyer, Crosse Partners, was represented by Randy Ellison and Andrew Ryan of Cushman & Wakefield.
The asset was attractive due to its location in West Orange County, providing easy access to the 405 Freeway and an abundant, skilled workforce, according to Wagner.
Some important features of the building were it having a higher parking ratio, a secure yard and heavy power capabilities, all of which were necessary for the buyer.
The Orange County industrial market saw a 40% increase in sales in 2025 versus 2024, fueled by a strong rebound in owner-user purchases, JLL?s data shows.
?Historically, property ownership has been a strong wealth creator for entrepreneurial business owners in Orange County, but from 2020-2022, the majority of sales were investor sales driven by historically low interest rates, 1031 buyers, and institutional investors that targeted smaller buildings,? Wagner told GlobeSt.com.
?Once interest rates rose in early 2023, investor demand dropped, and with the market in flux, owner-users took a step back as well. Now that the market is normalizing, owner-users are re-entering, and we anticipate continued strong demand from them in 2026.?
The property has nearly 38,000 square feet of 28-foot clear height warehouse space and 19,290 square feet of two-story office space. A secure fenced yard and ample parking are included. Executive housing and a strong/diverse labor pool are central to the location.
LA Industrial Sees Mostly Negative Absorption
Nearby in Los Angeles, the industrial sector is shifting back to negative absorption, totaling two million square feet, according to a fourth-quarter report from Savills.
Other than the Mid-Counties and Ventura County submarkets, nearly all submarkets saw negative occupier activity. Most of the negative absorption stemmed from the Antelope Valley and San Fernando submarkets.
Notable move-outs included Rite Aid vacating 927,000 square feet in Lancaster, HD Supply vacating 248,000 square feet in Pomona, and JCR Logistics vacating 184,000 square feet in Santa Fe Springs. This brought the vacancy rate up by 20 basis points (bps) from the previous quarter to 7.1%. Vacancy remains up 40 bps from one year ago and is the highest in buildings larger than 300,000 square feet.
Source: GlobeSt/ALM