Orange County Retail Figures Q4 2024

MARKET HIGHLIGHTS

• The Orange County retail market closed Q4 2024 with an availability rate of 3.8%. This represented a negative 0.4% decrease from Q3 2024. Continued demand with limited and non-growing supply led to the decrease in availability alongside positive net absorption.
• Net absorption in Q4 2024 was 547,000 sq. ft., compared to negative 19,000 sq. ft. in Q3 2024. This was the largest space absorption quarter-over-quarter since Q1 2021 as retailers recognized the importance of a physical store to accompany online shopping.
• Increased construction costs, permitting delays, and less land availability led to a decrease in new space deliveries from 3,000 sq. ft. in Q3 2024 to 0 sq. ft. in Q4 2024.
• The average NNN asking rate ended Q4 2024 at $2.57, a $0.03 increase from the previous quarter, and a $0.13 increase from last year. Increased demand with limited construction and space availability meant space demanded higher rents.
• The total retail investment sales in Q4 2024 amounted to $164.7 million in total volume, compared to $188.4 million in Q3 2024. Owners may be waiting for a better lending environment for buyers, as well as continued positivity in the market to get the best price for their asset.