LEASING RISES
Overall quarterly leasing activity jumped from 1.4 million square feet (msf) to 1.9 msf, but still came up short of the longterm quarterly average of 2.1 msf. Tenants have leased 7.7 msf in the four most recent quarters.
AVAILABILITY DECLINES
Orange County’s overall availability rate declined by 230 basis points to 18.3%. The Class A rate decreased by 200 basis points to 19.9%.
RENTS PUSH HIGHER
The overall average asking rent rose to $34.84, a quarter-on-quarter jump of 1.6%. Class A rent also increased, rising by 1.0% quarter-on-quarter to $38.52.
SALES DOWN
Office property sales during the last six months (through May 2018) totaled $561 million, a 31% decline compared to the previous six–month total of $817 million.
"Orange County continues to grow with a great diverse mix of tenants. The biggest growth can be found by large tech companies seeking access to labor, that are also attracted to Orange County’s quality of living. New buildings and creative offices continue to be in short supply, but new developments delivering late 2018 or early 2019 will benefit tenants."
Steve Card, Senior Managing Director