REAL ESTATE NEWS

Industrial tenants are increasingly willing to pay for newer, higher-quality industrial properties in prime submarkets.

Mazak Corp.'s deal is an example of that, as it signed a long-term lease to occupy an entire 14,093-square-foot building at Swallows Creek, a newly constructed Class A 136,000-square-foot industrial campus in San Juan Capistrano, California, according to a report from JLL. The property features three total buildings.

Orange County's industrial market has reaccelerated in Q1 2026, with tenants across all size ranges from 25,000 SF users to larger mid-box occupiers actively re-entering the market in a way not seen since pre-COVID peaks, according to Louis Tomaselli, executive managing director, JLL.

Activity levels, particularly among 3PLs, light manufacturing and consumer-driven distributors, are now tracking ahead of pre-2020 benchmarks, supported by concession packages to incentivize occupiers to move now and improved optionality.

"Notably, we're seeing a meaningful shift in tenant composition, with roughly 40 percent of current inquiries tied to manufacturing, aerospace, and advanced manufacturing user including a growing presence of rocket and space-related companies," Tomaselli told GlobeSt.com.

Recent JLL research points to a "re-engagement phase," where pent-up demand is converting into real tours, proposals and signed deals after a period of hesitation tied to pricing dislocation.

"In Orange County specifically, every sector from logistics to advanced manufacturing is on the move, with tenants prioritizing infill locations, power, and functional buildings over timing the market," he added.

"As a result, we expect to work through most of the long-standing inventory over the next 12 months, tightening vacancy and reducing available options."

That absorption should set the stage for a more balanced landlord-tenant dynamic heading into 2027, with pricing power gradually normalizing as supply and demand return to equilibrium, according to Tomaselli.

Dedeaux to Use Property for Office, Assembly and Warehousing

The building, owned by Dedeaux Properties, at 30590 to 30700 Rancho Viejo Road, will be used by the company, a leader in the design and manufacture of productivity-improving machine tool solutions, for general office, light assembly, warehousing and distribution.

Tomaselli was joined by colleague Kris Smith in the new lease; they are overseeing leasing at the property. Mazak was represented by Kyle McGillen of Cushman & Wakefield.

Swallows Creek can accommodate a wide range of users, from 20,000 to 120,000 square feet. The South Orange County property offers direct access to the Interstate 5 Freeway, providing convenience to neighboring communities.

Source: GlobeSt/ALM