IRR-Orange County Mid-Year Viewpoint 2015 Local Market Report - Office
The Orange County office market has generally strengthened over the last several years. Oversupply was evident at the time of the recession but lack of construction and increased demand has allowed the market to establish recovery trends. The vacancy rate was at a high of 21.0% in 2010 (all classes) and has moved downwards each year since and will continue to do so due to the lack of deliveries in the market. The current vacancy rate (all classes considered) sits at about 16.7%. Class A vacancy is leveling now because of new construction. Newport Beach alone is expecting two new projects to be delivered in 2015.
The market is seeing fewer concessions as companies are expanding and hiring again. Rent growth this strong has not been seen in this market since 2007. Leasing deals related to the new 425,000 square foot 200 Spectrum Center Drive in Irvine Spectrum is said to be impacting asking rents in the area. Despite new construction, large blocks of space (over 100,000 square feet) are limited in supply.
Download the full version PDF of this Local Market Report below to see the charts, graphs, and tables not included above.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.