Figures

Orange County Industrial Figures Q2 2026

Rising vacancy and declining lease rates underscore challenges in the market

July 10, 2026 5 Minute Read

Looking for a PDF of this content?

Download

  • Overall vacancy climbed to 5.5% in Q2 2026, up 30 bps quarter-over-quarter and 130 bps year-over-year, marking the highest vacancy rate recorded in the past 20 years.
  • Average asking rent fell to $1.49 NNN per sq. ft. per month, down 3.9% quarter-over-quarter extending a downward trend that began after rents peaked at $1.80 in Q4 2023.
  • The construction pipeline pulled back sharply, with only 676,000 sq. ft. under construction at quarter end — down 65.7% year-over-year — as rising costs and elevated availability made speculative development increasingly difficult to justify.
  • Leasing activity totaled approximately 2.51 million sq. ft., declining from Q1 2026's spike but remaining diversified across logistics, manufacturing, retail, and services tenants throughout all four submarkets.