(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.”
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
