IRVINE, CA—GlobeSt.com has learned exclusively that most of thepositive absorption seen in the Orange Countyoffice market in Q2 was in class-A space—notclass-B as was previously seen, according to JerryHoldner, VP of market research for Voit RealEstate Services. The sector showed continued signs ofrecovery during the quarter, posting more than 740,000 square feetof positive net absorption, the most positive absorption seen therein one quarter since Q1 2007.
“As the quarter came to a close, totals show 586,000 square feetof positive absorption in class-A space and only 114,000 squarefeet in class B,” says Holdner. “The return to class A demonstratesongoing confidence in the office market, which will continue tofuel market recovery.”
In addition, Q2 saw the fifth consecutive quarter of risingoffice lease rates, Voit reports. The averageasking full-service gross lease rate finished the second quarter at$2 per square foot per month, an increase of 5.82% from 2013'ssecond-quarter average asking lease rate.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
