My 2022 prediction on industrial rents went like this: They’ll increase. Next bullet point.
In Orange County, there are eight new developments proposed or under construction for a combined 2.7 million square feet. That’s a staggering number until you factor in what’s available today. That would be one. That’s correct! One available building.I’m shocked to see industrial rents surpass $2 per square foot, triple net. Just to put this in context, industrial rents in 2010 were approximately 25% of this. Yes! That’s correct a quarter of what they are today.
My team works remotely as do others. Adjusting to this change means smaller footprints and more multi-use spaces.There is some talk among the big players that a return to the office is imminent. Mentioned frequently is the difficulty in maintaining a culture with a remote workforce. We haven’t experienced this so much in Orange County. I believe we are headed for a hybrid workplace that flexes between remote and in-person office occupancy.