The electrical supply distributor’s renewal at the West submarket facility reflects the stability of long-tenured industrial occupiers in Orange County.
Rexel USA has renewed its lease for 130,291 square feet at 7366 Orangewood Avenue in Garden Grove, according to Colliers’ Q1 2026 Orange County Industrial Market Report. Goldrich Kest, the Los Angeles-based real estate investment and management firm, is the property owner.
The renewal represents one of the largest lease transactions in Orange County during Q1 2026 and underscores the tendency of established industrial tenants to remain in place rather than relocate, particularly in a market where moving costs and tenant improvement investments can be substantial. Rexel USA, the American subsidiary of Paris-based Rexel Group, one of the world’s largest distributors of electrical supplies and industrial automation products, has maintained its distribution operations in the Garden Grove facility for an extended period.
The Orangewood Avenue property sits within the West submarket, which encompasses Cypress, Garden Grove, Huntington Beach, Los Alamitos, Seal Beach, Stanton, and Westminster. The West submarket posted strong results in Q1 2026, recording 116,383 square feet of positive net absorption, despite no new construction deliveries during the quarter, according to Colliers. The submarket’s vacancy rate improved to 5.5 percent from 5.8 percent in Q4 2025.
Garden Grove specifically recorded a vacancy rate of 2.6 percent in Q1, down from 3.2 percent in the prior quarter, according to Colliers. The city’s tight market conditions and 12.2 million square feet of industrial inventory made the renewal a strategically sound decision for Rexel, avoiding the risk and expense of a market-wide search for comparable space.
Goldrich Kest, founded in 1957, owns and operates a diversified portfolio of commercial and residential properties across the western United States. The firm’s retention of Rexel USA as a long-term tenant at the Garden Grove facility adds stability to its industrial holdings in Orange County.
Rexel Group operates in 19 countries and generated approximately 19.2 billion euros in revenue globally. The company’s U.S. operations, branded as Rexel USA, provide electrical distribution, energy management, and industrial automation solutions to contractors, industrial customers, and utilities. The Garden Grove facility serves as a critical regional distribution hub supporting Rexel’s Southern California operations.
Across Orange County, gross activity rebounded sharply in Q1 2026, surging 53 percent quarter-over-quarter to 3,464,827 square feet, the strongest quarterly total since Q2 2021 and 19 percent above the 10-year quarterly average of 2.9 million square feet, according to Colliers. Average asking rents in the West submarket stood at $1.44 per square foot triple-net, while Garden Grove’s average asking rent was $1.33 per square foot.
The Rexel USA renewal reflects a broader pattern in Orange County’s industrial market, where renewal activity has remained elevated as tenants weigh the costs of relocation against the benefits of stability during a period of market recalibration.
