The listing says $1.50/SF monthly. That’s high but manageable for Orange County. Then you get the full picture: NNN charges add $0.50/SF, California electricity runs $200/month, and you need $8,000 upfront for deposits and equipment.
That $1.50/SF space actually costs $2.00-2.50/SF once everything’s included. The advertised rate represents roughly half the real cost.
Orange County is the most expensive industrial market in the United States. It’s also at its most tenant-friendly point in three years, with rents down 6-12% from 2023 peaks. This guide breaks down what warehouse space actually costs here so you can budget accurately.
How Much Is Base Rent for Orange County Warehouse Space?
Orange County industrial rents average $18-20/SF annually, with small-bay space often running $20-24/SF due to limited supply. That’s roughly 50% above the national average.
Rents vary significantly by area:
Area
Base Rent/SF (Annual)
Monthly (1,000 SF)
Central OC (Santa Ana, Tustin)
$14-18/SF
$1,167-1,500
Airport Area (Irvine, Costa Mesa)
$18-22/SF
$1,500-1,833
North County (Anaheim, Fullerton)
$15-18/SF
$1,250-1,500
South County
$18-22+/SF
$1,500-1,833+
But base rent is just the starting point.
What Are NNN Charges and How Much Do They Add to Warehouse Costs?
NNN stands for “net, net, net” – meaning you pay your proportional share of property taxes, building insurance, and common area maintenance on top of base rent.
In Orange County, NNN charges typically run $4-7/SF annually. For a 1,000 SF space, that’s $333-583/month added to your base rent.
The tricky part: NNN charges aren’t fixed. They fluctuate based on property tax assessments (California’s Prop 13 limits increases, but reassessments still occur), insurance renewals, and maintenance costs. Your NNN might be $5/SF this year and $6/SF next year after the building’s insurance renewal.
When evaluating a lease, request the current NNN amount and a history of increases over the past 3-5 years. Some buildings have stable NNN; others spike unpredictably.
How Much Does Electricity Cost for California Warehouse Space?
This is the California-specific cost that catches people off guard. Commercial electricity rates in California run 22-23¢ per kWh – 70% above the national average of 13¢.
For a 1,000 SF climate-controlled space running HVAC and basic operations, expect $150-250/month in electricity alone. If you’re running equipment (compressors, machinery, heavy lighting), add more.
Southern California Edison serves most of Orange County. Budget for higher utility costs than you’d pay in Texas, Florida, or most other markets.
What Are the Upfront Costs for Leasing Warehouse Space in Orange County?
Traditional leases often come as empty shells. Beyond the security deposit (typically 2-3 months’ base rent), you’ll need to budget for:
Item
Cost Range
Industrial racking
$1,000-3,000
Workbenches/tables
$300-1,000
Lighting improvements
$200-500
Internet setup
$100-300
Security deposit
2-3 months’ base rent
For a 1,000 SF traditional lease, budget $7,000-12,000 in total upfront costs, including the deposit.
Co-warehousing eliminates most of this. Racking, lighting, and internet are included. Upfront cost is typically one month’s rent as a security deposit.
When Does a Traditional Lease Make Sense vs. Co-Warehousing?
Traditional leases cost less per square foot over time, but they require more capital and commitment. They make sense when you’re confident about your space needs for 3+ years, comfortable managing NNN fluctuations and vendor relationships, and able to absorb upfront costs.
Co-warehousing costs more per square foot but eliminates complexity and commitment. It makes sense when your space needs are uncertain, you’re avoiding large upfront capital outlays, you want predictable monthly costs without NNN surprises, or you’re new to commercial space.
For a comparison of Orange County costs versus the cheaper Inland Empire market, see our Santa Ana vs. Inland Empire guide.
Orange County Warehouse Cost FAQs
How much should I budget for warehouse space in Orange County?
For 1,000 SF, budget $1,800-2,500/month all-in for a traditional lease (including base rent, NNN, utilities, and insurance) or $1,000-1,500/month for co-warehousing. Traditional leases also require $7,000-12,000 upfront; co-warehousing requires one month’s deposit.
What does NNN mean, and why does it matter?
NNN (triple net) means you pay base rent plus your share of property taxes, building insurance, and common area maintenance. In Orange County, NNN typically adds $4-7/SF annually to your base rent – $333-583/month on a 1,000 SF space. NNN charges can increase annually, so ask for historical data before signing.
Why is California electricity so expensive for warehouses?
California commercial electricity rates run 70% above the national average due to infrastructure costs, renewable energy mandates, and grid maintenance. For a climate-controlled 1,000 SF warehouse, expect $150-250/month in electricity, compared to $80-150 in most other states.
Are there any hidden costs beyond NNN and utilities?
Watch for: annual rent escalations (typically 3-4% in traditional leases), CAM reconciliation charges if actual expenses exceed estimates, parking fees in some buildings, and after-hours HVAC charges in multi-tenant buildings. Ask about all potential charges before signing.
Is warehouse space cheaper in the Inland Empire?
Yes, 25-35% cheaper on base rent. But the Inland Empire is 30-50 miles farther from the ports, which increases drayage costs for importers and commute times. Whether it’s actually cheaper depends on your business. See our full comparison.
WareSpace Santa Ana offers all-inclusive pricing without NNN surprises. Opening Fall 2026 at 2601 S Garnsey St.
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