JLL reports the tech sector drove net absorption in the 2nd quarter for Orange County office space, as leasing activity remained active despite broader economic headwinds. Larger leases in the Airport Area led to a 30% quarterly net absorption increase in that region while the South County area saw its first increase in 6 quarters.

In a continuation of a first quarter trend, businesses preferred office spaces that are less than 10,000 square feet, as those new leases accounted for 62% of Q2 activity. Meanwhile, the overall leasing volume on space over 10,000 square feet declined by 23% compared to Q1.

The JLL report indicates that Orange County is in good position to weather a potential recession with its lowest unemployment rate in 12 years. 7,300 employees were added in office-using industries in April and May, with a majority of those roles in the Profession and Business services sectors.