Home > Research > U.S. Market Reports Detail

U.S. Market Reports

Orange County Market Reports

Orange County Office Market

Average Asking Rent (Price/SF/Mo) $2.58
Vacancy Rate (%) 10.7%
Net Absorption (SF) 232,298

The average asking rent continued to climb, reaching a new cyclical high of $2.58/SF. The current rent is 6.7% below last cycle's high recorded in 2007, allowing room for additional growth. Net absorption was flat in the second quarter of 2017 with 232,298 square feet. At the submarket-level, the largest absorption gain occurred in Central County. Quarterly absorption and construction deliveries (212,000 square feet) were balanced. This caused vacancy to hover at 10.7%, a cyclical low. Sublet space is fairly moderate and represents just 2.3% of existing office inventory, which parallels the market's 10-year average. Under construction speculative space totaled nearly 1.4 million square feet, a new cyclical high. The Quad at Discovery Business Center, an Irvine Company project, broke ground this quarter and will deliver 370,000 square feet by mid-2018.

Orange County Industrial Market

Average Asking Rent (Price/SF/Mo) $0.99
Vacancy Rate (%) 1.9%
Net Absorption (SF) 44,524

The vacancy rate ended the second quarter of 2017 at 1.9%, flat compared with last quarter and hovering near a historic low. It was 150 basis points below last cycle's record low, recorded in 2007. Rents climbed to a new high. The second quarter's average asking rate was up 7.6% from one year ago. Coincidentally, it exceeded last cycle's peak (reached in 2008) by the same percentage. Quarterly net absorption remained positive despite limited supply and a lack of new construction. At the submarket level, North and South Counties posted the largest gains, while West County took a big hit. Only one speculative project was under construction during the quarter, a 144,008-square-foot building in Anaheim pre-leased to Rosendin Electric, Inc. Additionally, only one project was delivered this quarter, a 181,069 square-foot facility in Fullerton that was vacant upon completion. Limited land availability and entitlement barriers have constrained ground-up construction. Redevelopment projects are also rare since functionally obsolete industrial product is often more valuable as an alternate property type.



Orange County Office Market Report
2Q17
Download the PDF
Orange County Industrial Market Report
2Q17
Download the PDF

Local Market Contact:

General Research Inquiries: