Imex Vision LLC, a manufacturer of customizable cups and food containers, has signed a lease for a 60,100-square-foot industrial building in Irvine, California. The new facility, located at 9101 Jeronimo Road, is more than double the size of the company’s current headquarters in Lake Forest.
The move to Irvine is expected to enhance Imex Vision’s manufacturing and distribution capabilities, as the new facility offers ample space and 4,000 amps of electrical power, a rare find in older industrial buildings under 500,000 square feet.
Matt Biggs of Lee & Associates, who represented Imex Vision in the lease negotiation, emphasized the importance of the facility’s power capacity, stating that it was a critical requirement for the company’s operations, according to a report in the Orange County Business Journal.
The lease was negotiated on behalf of the landlord, theme park design company Battaglia Inc., by Kyle McGillen and Rick Ellison of Cushman & Wakefield.
Imex Vision’s current headquarters in Lake Forest has been listed for lease, the report added.
After years of booming demand, Orange County’s industrial real estate market is cooling down, according to a recent Orange County Q1 2024 Industrial Market Outlook by NAI Capital. The pandemic-driven e-commerce surge has subsided, leading to a glut of vacant warehouse space and a shift in power from landlords to tenants. Vacancy rates are rising, with a significant increase in sublease space hitting the market. Leasing activity has also slowed considerably. This oversupply, combined with rising interest rates, is putting pressure on landlords and slowing sales. Despite these challenges, demand for large, modern distribution warehouses remains strong, especially from e-commerce and logistics companies. However, developers are now building without committed tenants, a change from recent trends.
For tenants, this shift in the market is good news. They now have more options to choose from and increased negotiating power. Landlords, on the other hand, face a more challenging environment and need to be more flexible in their leasing strategies.
While the immediate outlook may seem challenging, the long-term prospects for Orange County’s industrial real estate market remain positive due to its robust business climate and strategic location. The market is simply rebalancing after a period of exceptional growth, NAI’s report concluded.
