IRVINE, CA-Leasing volumes in Orange County have been steadily increasing since 2009 and will continue to do so as strong job-creation numbers continue to increase, Jerry Holdner, Jr., VP of market research for Voit Real Estate Services, tells GlobeSt.com. As GlobeSt.com reported earlier today, with vacant space decreasing from fourth-quarter 2012 and nearly 70,000 square feet of positive net absorption for the first quarter, the Orange County retail market is displaying positive indicators, according to a market report from Voit. Average asking triple-net lease rates appear to be stabilizing, but stability and job growth will need to continue in the coming quarters to sustain a recovery.

“Discounters have been the most aggressive leasers recently, and that trend should continue into 2014,” Holdner adds. “Rent growth has begun as well; we're expecting rent growth of about 3.9% for 2013 and 5.1% in 2014.”

Holdner tells GlobeSt.com that several retail development projects are underway in Orange County. M&D Properties has broken ground on the Source, a 460,000-square-foot lifestyle center near Knott's Berry Farm that also includes office, hotel and entertainment components; and DJG Capital Partners is reportedly close to starting work on Pacific City, a 217,000-square-foot retail development that contains a hotel component.

“These projects are hoping to generate their own density to support retail sales,” says Holdner. “Areas in which density will increase due to home building, such as the proposed 5,000 new houses at Great Park in Irvine, are also likely to spur ground-up retail construction over the near term.”