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Office Sales Set Records in 2017
Investors are acquiring office buildings and commercial real estate complexes at a record-setting pace at valuations not seen before. JLL reports that through the first nine months of the year, $1.92 billion worth of Orange County office space traded hands in 34 transactions.
That breaks the previous record set in 2015 of $1.7 billion and the $286 average price-per-square-foot shattered 2008’s level of $282. Volume increased 88% and it marks the third straight year above $1 billion, topping the previous high volume set in 2015.
The largest transaction in 2017 included FivePoint Holdings purchase of the one-million square-foot, four-building FivePoint Gateway project from Broadcom in a sale-leaseback deal for $443 million. Broadcom agreed to lease two of the buildings for 660,690 square feet.
JLL’s Jared Dienstag notes that private capital firms are very active in the Orange County market. The growing local economy and favorable market conditions, including low vacancy and rising rents, continue to attract investors.
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