The Orange County industrial market remains on firm footing as net absorption rebounded from negative absorption levels last quarter as a result of JCPenneyâ€™s sizable move-out. Moreover, asking rental rates continue to record all-time highs experiencing the strongest rent growth out of any property type and direct vacancy levels remain below 4% for 21 straight quarters. Sales transactions have also picked up in 2Q19 as buyers have looked to capitalize on rent premiums and current market conditions. Overall employment growth remains positive, as the Orange County unemployment rate remains amongst the lowest in the nation at 2.4%, 110 basis points (bps) lower than the stateâ€™s average of 3.5% and 100 basis points lower than the national average of 3.4%. Lack of availability and ongoing conversions of industrial product to residential or creative office space has forced some tenants to re-evaluate real estate needs as they proceed in negotiating early renewals or locating new space for operations. With limited opportunities, steady demand, and no indications of an economic downturn in the short-run, expect the Orange County industrial market to remain vigorous through 2019.