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Santa Ana Redhill Development <br /> <br /> <br /> <br /> <br />Prepared for: City of Santa Ana <br /> <br />AECOM <br />15 <br /> <br />Flex rent in the 2-mile radius has been historically higher than industrial properties, which also tend to be larger on <br />average. The 2-mile radius has tracked the trend of Orange County and was $16.24 (NNN/SF/year) for both <br />geographies at the end of 2018. <br /> <br />Adjusted for inflation, Industrial rent increased 27% in the 2-Mile Radius and 22% in Orange County from 2010-2018, <br />again indicating a healthy industrial market. <br /> <br />Table 6: Flex Inventory and Growth 2000-19 <br />Flex Inventory and Growth 2000-2019 <br /> 2-Mile Radius Orange County <br />Inventory 10,887,724 67,826,884 <br />Share of OC 16% 100% <br />Growth 2010-19 (SF) 22,530 159,713 <br />Growth 2010-19 (%) 0.2% 0.2% <br />Share of OC Growth 14% 100% <br />Source: Costar, AECOM <br /> <br />While the 2-mile radius represent a significant portion (16%) of Orange County’s total flex inventory, growth has been <br />minimal since 2010 (<1%). Nonetheless, growth across Orange County for flex space has been very low (<1%) and <br />the 2-mile radius has captured 14% of this limited growth. <br />As shown in Table 2, a single project in the current pipeline will add over 230,000 SF of flex space to the 2-mile <br />radius, greater than total inventory growth for all of Orange County since 2010. Many of the same factors that are <br />impacting traditional industrial space are also dampening demand for flex space. <br /> <br />Multifamily <br /> <br />Figure 8: MFR Vacancy <br /> <br />Source: Costar, AECOM <br /> <br /> <br /> <br /> <br /> <br /> <br />6.1% <br />4.7% <br />0.0% <br />1.0% <br />2.0% <br />3.0% <br />4.0% <br />5.0% <br />6.0% <br />7.0% <br />8.0% <br />9.0% <br />10.0% <br />2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 <br />MFR Vacancy <br />2-Mile Radius Orange County <br />3-242