LEASING DECLINES
Overall quarterly leasing activity fell from 1.9 million square feet (msf) to 1.3 msf, well below the long-term quarterly average of 2.1 msf. Tenants have leased 6.9 msf in the four most recent quarters.
AVAILABILITY JUMPS
Orange County’s overall availability rate posted a significant quarter-on-quarter increase, rising by 150 basis points from 18.3% to 19.7%. The Class A rate rose by 140 basis points to 21.3%.
RENT JUMPS
The overall average asking rent increased to $35.86, a quarter-on-quarter spike of 1.7%. Class A rent also pushed higher, jumping by 0.8% quarter-on-quarter to $39.47.
SALES ALMOST UNCHANGED
Office property sales during the first seven months of the year totaled $1.2 billion, a 0.7% increase compared to the first seven months of 2017.
"Rent growth has begun to stabilize in Orange County - leasing activity in several submarkets remains strong, with numerous large transactions likely to be completed in Q4. The Class A Airport submarket continues to see rent growth, however at a slower pace than previous quarters. South Orange County's rent growth has slowed after numerous quarters of significant increase; however, new projects recently delivered or under construction are commanding some of the highest rents in Orange County."
Randall S. Parker, Senior Managing Director