
Flexible Space Drives Office Market
A diversifying tenant mix in Orange County is continued to be fueled by the emergence of flexible office space options. Executive suites and co-working operators now play a key role in driving significant changes, according to JLL’s Q3 2017 office market report.
The report notes there are more than 50 flexible office locations totaling roughly one million square feet, half of which is located in the Airport area.
Other market highlights include:
- Sales volume has accelerated, so too has pricing. In 2016, volume totaled $1.7 billion, compared to a year-to-date total of $1.9 billion.
- Average sales price has climbed 12.9% to $280-per-square-foot, with the number of transactions of at least $350-per-square-foot doubling from four to eight.
- New development activity continues to shape the local office market noticeably. Of the Class A buildings already completed in 2017, as well as those currently under construction, only one consists of more than 10 stories, compared to six properties delivered in 2007 and 2008.
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