Irvine, CA Irvine, CA

The office vacancy rate remained relatively flat in the second quarter, decreasing only 30 basis points to 11.3%—according to a new report from Cushman & Wakefield. While the vacancy rate barely nudged, leasing activity and absorption was strong and rental rates continued to rise. The stagnant vacancy rate is likely due to new office product that came to market during the quarter.

“Absorption remains positive and healthy, but not overly strong. Orange County closed out the second quarter of 2018 with overall vacancy declining to 11.3%, while direct vacancy also decreased 20 bps to 10.7% quarter-over-quarter,” Eric Kenas, market director of research at Cushman & Wakefield, tells “We had 143,000 square feet more this quarter, with the first quarter posting 130,000 square feet bringing year-to-date to 272,000 square feet. This is down from 827,000 square feet from a year ago. A lot of absorption has been offset by 786,768 square feet of new deliveries to the market.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

More from this author


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.