Single-Digit Vacancy and Rising Rents Drive New Construction According to NAI Capital Office Market Outlook for Orange County, CA
Orange County, CA, Wednesday, April 26, 2017– According to research provided by NAI Capital, in the first quarter of 2017 the Orange County Office market vacancy rate continued in single digit territory, the lowest seen since 2007. The vacancy rate registered 9.1%, down 80 basis points from a year ago. At the end of the quarter average asking rents reached $2.49/SF, up 2.5% from the previous quarter and 6.9% over last year. Over a two-year period the average asking rent has grown 17 percent.
Developers have responded to the low vacancy and rising rents by adding new supply to the market. More than 2.2 million square feet is under construction. Office space under construction is at one of the County’s highest levels since 2007.
Brian C Childs, Executive Managing Director with NAI Capital’s Irvine office said, “Higher sale and lease pricing is already baked into the market so our expectation is for stabilized sale and lease pricing with limited growth in 2017.”
As of the first quarter of 2017, a good 21% of the office space under construction has been preleased – and that figure is expected to rise as projects near completion. In addition, almost all existing construction is anticipated to be delivered by this summer. In the coming quarters, the average asking rent is expected to rise as pricing for the new space is factored into the market and the vacancy rate inches up with the added new supply.
To access the full Orange County Office Market Outlook report, visit:
About NAI Capital
NAI Capital is the largest independently owned full service commercial real estate firm headquartered in Southern California. As one of the largest members of NAI Global, the premier managed commercial real estate service network with 400 offices and 7,000 market leaders spanning the globe, NAI Capital provides a complete range of transaction, valuation, investment, property management and consulting services. By leveraging our local expertise with our global reach, NAI Capital offers innovative, customized solutions and seamless service to owners, tenants, investors and developers throughout Southern California. NAI Capital clients have built their businesses on the power of our expanding network. We are a dynamic growing commercial real estate company. At NAI Capital we work together putting our clients first.
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To learn more, visit www.naicapital.com
About NAI Global
Founded in 1978, NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 400 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 7,000 local market professionals, managing in excess of over 425 million square feet of property. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.
NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services.
To learn more, visit www.naiglobal.com.
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