Larger Deals Provide Boost to Orange County's Industrial Market
Industrial deal flow on bigger assets is picking up in Orange County.
For spaces 50,000 square feet and larger, historical Q1 new lease activity from 2022 to 2025 averaged an anemic 5.5 transactions and 533,000 square feet.
However, that changed for the better in Q1 2026, which saw 13 transactions across 1.32 million square feet of building area, representing "massive" increases of 136% and 149%, respectively, compared with first-quarter averages from 2022 to 2025, according to Zach Niles of JLL
Among the industries that leased space are defense, food and beverage, logistics, automotive and players supplying the AI and data center sectors.
"In real-time, we continue to see elevated inquiry and tour activity, particularly for spaces ranging from 50,000 – 150,000 square feet," Niles told GlobeSt.
A recent notable deal Niles worked on involved Western Realco's acquisition of a fully entitled 12.14-acre industrial site on East Vermont Avenue in Anaheim, California. The developer paid $40.7 million to snatch it from Rexford Industrial's hands. Along with Niles, Louis Tomaselli and Steve Wagner of JLL represented the transaction's seller and buyer.
The buyer will immediately begin demolition and construction to develop a new, 256,046-square-foot Class A industrial building expected to be completed late 2027.
The building's location, size and versatility, paired with the city of Anaheim's business-friendly environment and public power utility, made it an attractive deal, Jeremy Mape, principal at Western Realco, said in a release.
JLL will market the new development for lease or sale. The asset can accommodate a broad range of uses, including logistics, manufacturing, assembly, food processing and temperature-controlled storage.
The new building will feature 36-foot clear height, 39 dock-high doors, an ESFR sprinkler system, 4,000 amps of power and a fully enclosed truck court. It will be in Anaheim's stadium area, offering immediate freeway access and ideal reach to Southern California's more than 23 million residents.
Source: GlobeSt/ALM