Panattoni Development Company Inc. recently broke ground on Orange County Commerce Center, a new industrial development at 711 and 721 South Van Buren Street in Placentia, California, and 1365 and 1367 South Van Buren Street in Anaheim, California. The property, which is expected to be completed in early first quarter 2019, comprises four buildings ranging in size from 47,813 square feet to 69,882 square feet, totaling 232,000 square feet, on the border of Anaheim and Placentia.
Panattoni is developing the property in partnership with Principal Real Estate Investors after acquiring the 10-acre land parcel, a rarity in the Orange County market, in 2017, according to DAUM EVP Chris Migliori, who directed the sale. Migliori has been retained as the exclusive listing agent and will be marketing the buildings for lease in the months ahead.
The development will feature state-of-the-art construction, with each building offering two stories of executive office space, 30-foot minimum warehouse clearance, ESFR sprinkler systems, both dock-high and grade-level loading, and fully secured concrete truck courts. The project will also benefit from its close proximity to five major freeways (I-5, SRs 91, 57, 55 and the 241 toll road) while providing direct access to the Ports of Los Angeles and Long Beach, which recorded their highest-ever container traffic in 2017 with a total of 16.89 million TEUs.
“This is the ideal time to bring a product of this scale to market,” Migliori says, noting that of the 234 million square feet of existing industrial assets in the Orange County market, a relatively small amount is class-A product. “Industrial demand heavily outweighs supply in the Orange County market, and investor appetite remains strong.”
Migliori points to Orange County market fundamentals and Panattoni’s proven track record in industrial development as key indicators in the success of this project. “This is a seasoned developer with tremendous expertise delivering first class commercial real estate assets to markets throughout the U.S.,” Migliori explains. “This new project will be no different. The development will feature high-quality construction and in-demand industrial amenities that will benefit the supply-constrained Orange County market, making this a rare opportunity for industrial investors.”
The Orange County industrial market continues to demonstrate strong demand, with Q1 2018 posting an extremely tight vacancy rate of 1.5 percent and average asking rents that increased 5.8 percent year over year, according to Migliori. Further, construction activity decreased during the quarter, signaling more rent growth ahead, he notes. “The county’s fundamentals are exceptionally strong for industrial investment. As demand continues to outpace supply, we expect an additional 4 percent to 6 percent increase in industrial rents in 2018.”