1. Orange County, CA | Industrial
Integra Realty Resources - Orange County
Steve Calandra, MAI
Senior Managing Director
24411 Ridge Route Drive, Suite 100
Laguna Hills, CA 92653
Phone: 949-709-7200 x237
scalandra@irr.com
2015 Mid-Year
Industrial Snapshot Market Commentary
The industrial market is experiencing increased demand as
imports from the Ports of Long Beach and Los Angeles have
increased. As a result, rents are increasing and vacancies
are declining. The market has generally strengthened over
the last three years and we expect this trend to continue with
4% market rent growth in the next 12 months based on
increased demand and decreased vacancies.
MARKET CYCLE
Market Cycle: Expansion Stage 2
 Decreasing Vacancy Rates
 Med/High Rental Rate Growth
 Moderate/High New Construction
 High Absorption
 Moderate/High Employment Growth
The increase remains in line with the average expense
growth rate. The market anticipates receiving an additional
748,227 square feet of industrial space in 2015 which is
unlikely to significantly impact future vacancy and market
rent rates. Large spaces of more than 300,000 square feet
are in particularly short supply. Overall the market is
extremely healthy and is continuing its trend of expansion.
Legend
■ Industrial Class A ■ Flex Industrial
Expansion Hypersupply
Recovery Recession
5.5%
6.1%
6.9%
4.6%
6.9%
7.7%
0%
2%
4%
6%
8%
10%
Market Regional National
GOING IN CAP RATES (%)
7.3% 7.5%
8.1%
7.3%
8.2%
8.8%
0%
2%
4%
6%
8%
10%
Market Regional National
DISCOUNT RATES (%)
$9.1
$7.3
$5.6
$12.4
$13.3
$9.7
$0
$2
$4
$6
$8
$10
$12
$14
Market Regional National
MARKET RENT ($/SF)
3.8%
6.6%
7.7%
5.2%
10.7% 10.6%
0%
2%
4%
6%
8%
10%
12%
Market Regional National
VACANCY RATE (%)

2. Orange County, CA | Industrial
Integra Realty Resources - Orange County
Steve Calandra, MAI
Senior Managing Director
24411 Ridge Route Drive, Suite 100
Laguna Hills, CA 92653
Phone: 949-709-7200 x237
scalandra@irr.com
2015 Mid-Year
About IRR
Integra Realty Resources (IRR) is the largest
independent commercial real estate valuation and
consulting firm in North America, with over 200 MAI-
designated members of the of the Appraisal Institute
among over 900 professionals based in our 66 offices
throughout the United States and the Caribbean.
Founded in 1999, the firm specializes in real estate
appraisals, feasibility and market studies, expert
testimony, and related property consulting services
across all local and national markets. Our valuation
and counseling services span all commercial property
types and locations, from individual properties to large
portfolio assignments. For more information, visit
www.irr.com or blog.irr.com.
Disclaimer
While the great majority of data and content contained herein is proprietary to IRR, this publication includes data provided by third parties,
and while the available data is presumed to be accurate, no representation or warranty is made regarding the accuracy of the information
contained in this publication. This publication does not render legal, accounting, appraisal, counseling, investment or other professional
advice. Should such services or other expert assistance be needed, it is recommended that the services of a competent person or firm,
having access to the details of the situation, be employed.
ORANGECOUNTY 12 MONTH FORECASTS
Categories Industrial Class A Flex Industrial
Going In Cap Rate Increase 1-24 bps Increase 1-24 bps
Discount Rate Decrease 1-24 bps Decrease 1-24 bps
Market Rent Change (%) 4.00% 4.00%
Expense Change (%) 4.00% 4.00%
Absorption (SF) 996,500 498,250
Construction (SF)
Tenant Improvement ($/SF) $8 $8
Years to Balance In Balance In Balance
AVERAGEANNUAL CHANGEIN VALUE
Time Industrial Class A Flex Industrial
Previous 36 Months Remain Steady - no change Increase .1% - 1.9%
Previous 12 Months Remain Steady - no change Remain Steady - no change
Future 12 Months Increase 2% - 3.9% Increase 2% - 3.9%
Future 36 Months Increase 4%+ Increase 4%+
748,227
TOP SEVEN CAP RATEFACTORS
 National economic conditions/GDP growth
 Local economy, job growth, unemployment
 Property income growth
 Risk premium of private real estate
 Supply/demand
 Availability of financing
 Interest rates