Orange County Office Market Outlook 2Q 2017
In the second quarter of 2017, the Orange County office market has continued to remain strong, as it witnessed both some of the lowest vacancy rates and highest rents since 2007. The vacancy rate edged up 20 basis points over the quarter to 9.2%, but remains 650 basis points below the peak in 2010. Asking rental rates averaged $2.52/SF this quarter, representing an increase of 1.6% over the prior quarter and 6.3% over last year. There are more than 2.4 million square feet under construction, of which 54% is preleased. Demand for office space is driven by job growth in the office occupying sectors.