Asking Rents Up 5% - Lessor Momentum Accelerates—Tenants need to make moves...

Distinguished owners, investors, and tenants, the industrial lease market in Orange County for spaces between 10,000 and 100,000 square feet continues to evolve as we approach 2026, seemingly favoring lessors while also enticing tenants. As of November, active listings stand at 396 (+8 MoM), representing just 14.02 million sf of available space—an effective 2.9 months of inventory at current absorption velocity. For context, that is roughly half the equilibrium level most institutional buyers underwrite.

Asking rates rose a disciplined 5% month-over-month to $1.45 NNN, with the Airport submarket and Irvine Spectrum leading at $1.71/sf and $1.59/sf, respectively. Santa Ana (45 listings) and Anaheim (40 listings) both posted healthy $1.49/sf and $1.47/sf averages, while the county-wide high touched $2.99/sf—a clear signal that Class-A product with excess parking and 32′ clear remains in a pricing tier of its own.

Average days-on-market improved 4.8 to 331.6, and sublease exposure held steady at a modest 1.02 million sf (7% of total availability).

Tenants are committing early; concession packages are shrinking faster than free-rent requests are being reduced.

Strategic takeaways for owners:

  • The 10k–20k sf segment (160 listings, 40% of inventory) is absorbing fastest—asking rents at $1.55–$1.65 NNN with improved product and office finishes to capture that all-star tenant.
  • Larger spaces/properties (50k–100k sf) are asking north of $1.52/sf
  • With only two asking-rate reductions this month, the bid-ask spread has effectively vanished? Now is the moment to recalibrate rents before year-end budgeting locks in tenant expectations.
  • Lessors with low basis have the edge in lease up but keep in mind that it may not be indicative of true comps.

The data is unambiguous: Orange County industrial remains the landlord’s market of the highest order. Those who price decisively and market aggressively will continue to set the comps.

(Courtesy Warehouse Guru– precise intelligence for decisive ownership.)