Orange County Office Market Posts Positive Net Absorption
Save the date: RealShare Orange County comes to the Hyatt Regency Irvine on August 22.
(Save the Date: RealShare Orange County 2012 comes to the Hyatt Regency, Irvine, August 16.)
ORANGE COUNTY, CA-GlobeSt.com exclusively got a sneak peak at Voit Real Estate Services second quarter Orange County market report, which showed that the office market posted 955,283 square feet of positive net absorption—the most positive net absorption seen in a single quarter since the third quarter of 2005. In addition, the firm says that both vacancy and availability decreased from the previous quarter.
Research-oriented businesses such as IT, defense, medical, and alternative energy will lead the charge of positive absorption over the next few years, explains Jerry Holdner, VP of market research at the firm. As companies continue to absorb space, vacancy and availability will continue to decline, he says.
The Orange County office market ended the second quarter of 2012 with lower vacancy and availability than prior quarters, which is a positive indication that the office market continues to improve, Holdner explains.
And there are strong indications the recovery will continue, he says. “Even after this quarter’s substantial positive absorption, we expect to see more positive absorption in Q3 and Q4 of this year.”
Holder also notes that major companies are currently growing their footprints in the market. “There are already commitments which will affect office absorption in Q3,” Holdner says. “CoreLogic will move into a 170,000-square-foot office space in the Spectrum in August of 2012, while A to Z Development, which occupies 23,000 square feet in the same building, will expand to 82,000 square feet.”
In terms of vacancy, the report indicates a continued downward trend in the amount of vacant office space being added per quarter, and Voit predicts an overall increase in investment activity in the coming quarters as lenders continue to dispose of distressed assets.
“Each of these factors supports sustained improvement in Orange County’s office market,” says Holdner. “As long as job creation continues to increase and consumer confidence stabilizes, we expect this recovery to continue.”
Be sure to visit GlobeSt.com's NEW Sectors-to-Watch page for in-depth looks on the Hotels, Industrial, Multifamily, Office, Retail, Student Housing, Net Lease and Healthcare Real Estate markets.
You can now be notified via email if this story is updated by clicking on the "Follow this Story" link. You must be a registered member to take advantage of this "members only" benefit.