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LEASING SPIKES
Overall quarterly leasing activity nearly doubled, jumping to 2.2 million square feet (msf). Tenants have leased 6.9 msf in the four most recent quarters.
CLASS A AVAILABILITY RISES
Orange County’s overall availability rate was unchanged, remaining at 19.5%. The Class A rate rose by 90 basis points to 21.9% and has spiked by 280 basis points from a year ago.
RENT STABLE
The overall average asking rent rose to $35.71, ticking up by 0.5%. The Class A rate fell from $39.53 to $39.45.
SALES ALMOST UNCHANGED
Office property sales during the first 11 months of 2018 totaled $2.5 billion, a 5.6% decrease compared to the same period during 2017.
"Market conditions remain strong, but macroeconomic headwinds could spur market softening in 2019. Rent growth has started to stabilize as sublease options increase, and tenant movement to new buildings opens options in existing properties. Several larger transactions at year's end, including rapid growth from coworking providers, is a sign of confidence in market demand. However, supply increases will create favorable conditions as landlords are forced to boost concessions and cater to tenant demand."
Royce Sharf, Executive Vice President