ORANGE COUNTY, CA—The Orange County office market is on target toward a projected eight-year low in annual vacancy this year, largely due to job growth over the last several quarters, according to Marcus & Millichap's second-quarter office report. Where can we expect to see future job growth in the county?

Robert Osbrink, regional manager of M&M's Newport Beach office, tells GlobeSt.com that mortgage brokerages—once a huge sector of the county's office market prior to the recession—and financial-services firms are two of the fields where job growth is expected here. But there's more. “Related medical companies and providers associated with the medical field” are predicted to add jobs, and “high-tech firms are regaining growth in the county,” says Osbrink.

According to the report, several quarters of job growth yielded requirements for larger layouts and tightened availability again during the period, maintaining the market on targeted toward the eight-year low in annual vacancy this year. Rents are also growing vigorously as property owners exert greater pricing power. In the absence of meaningful supply growth during the year, the market's healthy demand drivers will most greatly affect key performance measures.

The report also says professional- and business-services employment is at an all-time high and remains on a growth trajectory despite minor cutbacks in the first quarter. Financial-services employment, however, remains below the prior peak, and some of the jobs in residential mortgage fields prior to the downturn will not likely return. Nonetheless, employment in the sector is growing and providing a reliable source of space demand.

As GlobeSt.com reported earlier, Orange County office landlords are investing in unique upgrades to keep tenants happy, Voit Real Estate Services' VP of market research Jerry Holdner told GlobeSt.com exclusively, and the amenities trend in the office market certainly seems to be working in landlords' favor. According to Cushman & Wakefield's Q2 office report, Orange County's overall vacancy dropped another 2.1 pps over last year to 12.7%, the lowest level since Q3 2007. Leasing activity showed a 16.1% increase over last year, with activity concentrated in the healthcare, communications and financial sectors. Central County submarket, which has been the slowest to recover in Orange County, is now in full growth mode, positive absorption is up and direct asking rents rose 25.6% from last year to $2.80 per square foot per month. Developers are also bullish on the market, and plans for new speculative development are on the rise.