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The Business Journal’s annual list of the biggest commercial developments shows 11 developers tripled their projects to almost 2 million square feet for the year ended April 30.
However, that amount is down from the 3.8 million square feet developed by 12 companies on last year’s list that ended April 30, 2024.
This list, which is ranked by square footage built, often changes members as evidenced by seven of the 11 companies this year didn’t appear on last year’s list. The companies on this list often provide other real estate services besides commercial development.
Industrial real estate within Orange County is struggling but still performing better than the national average, according to Hans Nordby, research leader at Houston-based Transwestern Real Estate Services.
“Vacancy rates are lower in Orange County than most any other market in the country on the industrial side. Vacancy rates in Orange County are up 4.8%, which is way higher than historical levels. While not great, U.S. vacancy rates are up 7.8%, which is a great story for Orange County,” Nordby told the Business Journal.
Dermody Climbs to No. 1
Reno, Nevada-based Dermody Properties Inc. led the way with 536,690 square feet of projects developed through April, a 72% increase over the 311,770 square feet it developed in the previous year. Last year, the company was ranked No. 3. Dermody estimated the value of its projects at $89 million.
One of its 2024 projects was LogistiCenter at 55, an industrial property at 1100 Valencia Ave. in Tustin, where Dermody built 177,766 square feet of distribution space.
Irvine-based LBA Realty, ranked No. 4, jumped 323% with 169,200 square feet of projects developed through April—compared to only 40,000 square feet in the previous 12 months.
Highlighting LBA Realty’s development portfolio for the past year was The Park at Park Place, an office conversion project at Michelson Drive and Jamboree Road in Irvine.
Another Irvine-based real estate company—industrial property group Goodman North America Management LLC—had 509,717 square feet of development in Orange County, placing them second on this year’s list.
Some of those projects include 2099 E. Orangethorpe Ave., Building 2, and 1829 E. Orangethorpe Ave., both in Fullerton.
Ranking third on this year’s list of commercial developers was Los Angeles-based Rexford Industrial Realty Inc., which has 488,000 square feet of projects developed within the past year.
Besides Goodman and LBA, other OC companies on the list this year include Newport Beach-based Ares Management with 136,612 square feet of development; San Juan Capistrano-based Almquist with 54,599 square feet of development; and Irvine-based Guthrie Development with 85,277 square feet of development.
Tariffs Impacting Leasing Demand
El Segundo’s 9th St. Partners LLC ranked No. 6 with 137,698 square feet of development.
Tom Ashcraft, managing partner of 9th St. Partners, said interest in Orange County’s industrial market is being tempered by economic uncertainty.
“The tariff situation has placed a large amount of uncertainty on users, which has impacted leasing demand,” he said in an email. “It is impossible for a company to plan for the future when they have no idea how much their raw materials or completed products will cost. This in turn has caused completed buildings to sit vacant longer than anticipated.
“However, we believe that the tariff issue will be resolved in the near term, things will stabilize, and users will be able to start planning for the future again. We have recently seen an uptick in lease inquiries to support this.”
Research Director Desmond Celo contributed to this report.