OC Office Investors, Tenants Being Cautious

Jones: “Orange County fundamentals continue to be very strong, and we are seeing spec development by someone other than the Irvine Co. for the first time since 2007.”

IRVINE, CA—As the recovery enters its 82nd month, office investors are being more selective in the opportunities they chase, and uncertainty over the impending presidential election is causing office tenants to pause before making leasing decisions, NGKF’s senior managing director Paul Jones and managing director Andrew Robben, CCIM, tell GlobeSt.com. The firm’s Q1 office report revealed that Orange County’s office market began 2016 at a noticeably slower pace than it began 2015, with the class-A market recording its first quarter of net-occupancy losses in six quarters. Local investment activity also slowed in the first quarter, with only four completed transactions exceeding $25 million—the slowest pace since 2014. We spoke exclusively with Jones and Robben about this dynamic and the causes for the slowdown in investment and leasing.

GlobeSt.com: What is causing the slowdown in office investment sales that Orange County is experiencing?