Orange County Office Market Stagnates in Third Quarter
A new report from Kidder Mathews indicates that while the OC labor market shows growth, and unemployment decreased, the CRE office sector continues to lag. Direct vacancy levels in the third quarter remained flat at 11.1%, and only modest leasing growth is anticipated in future quarters.
That being said, Orange County activity was fairly active in Q3 with nearly 1.4 million square feet leased, indicating that some companies are more willing to commit long term. Direct asking lease rates concluded the quarter at $2.70/SF.
A couple of projects in the pipeline will add spec office space, including the new Spectrum Terrace Phase III, which is available for lease and features some of the most opulent amenities in the county, according to Kidder.
In the short term, a full return to pre-pandemic standards is not anticipated because companies have devised a variety of strategies for working from the office.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.