Orange County office market shows signs of stabilization as construction slows and rents hold flat
Overall availability in Orange County ended the quarter at 17.6%, a 150-basis-point decrease year over year, due to stronger demand and a lull in new deliveries. The amount of office space currently under construction has decreased by 68.0% year over year as developers have become more cautious about the future market. With ongoing tenant flight to quality, Class A availability declined 230 basis points year over year (19.6%), while Class B availability saw a more muted decline of 50 basis points, now at 15.5%. With demand continuing to shift from Class A high-rise space to campus-style locations, Orange County Class A asking rates have plateaued, ending the year at $3.27 per square foot (psf) per month – nearly unchanged from this time last year. Overall asking rates ended the quarter at $2.98 psf per month, also nearly flat over the year.