LEASING FALLS
Overall quarterly leasing activity decreased from 2.2 million square feet (msf) to 1.4 msf, falling well short of the long-term quarterly average of 2.1 msf. Tenants have leased 7.8 msf in the four most recent quarters.
AVAILABILITY JUMPS
Orange County’s overall availability rate jumped by 110 basis points to 19.9%. The Class A rate increased by 180 basis points to 21%, but Class B and C availability jumped merely 20 basis points to 18.6%.
RENT PUSHES HIGHER
The overall average asking rent jumped to $34.30, a year-on-year increase of 9.7%. Class A rent also spiked, rising by 13.2% year-on-year to $38.16.
SALES DOWN
Office property sales during the last six months (through February 2018) totaled $1.1 billion, a 25.7% decline compared to the previous six–month total of $1.5 billion.
"A decrease in the number of larger leases, new product coming on line and increased space efficiency by tenants has boosted availability in the last several months."
Matt Wiley, Corporate Managing Director