Scott Wetzel ScottWetzel

The Central Orange County office market has had an anemic startto the year. The market lost two large tenants to the Airport Areaand has had negative absorption of 67,741 square feet—down 35 basispoints, according to research from JLL. It isn'tall bad news. Orange County office leasing, in general, has beenflat this year, so the Central OC market is on trend. Even better,rental rates have continue to rise and the vacancy rate is downnearly a full percentage point year-over-year.

“2018 year-to-date net absorption is only down 35 basis points,so it's unfair to say Central County has experienced anysignificant negative absorption. Two large tenants, AAG andUFC Gym, who together account for 82,000 square feet, bothrelocated to the Airport Area,” Scott Wetzel, VPat JLL, tells GlobeSt.com. “Still, it's important to note thatyear-over-year vacancy rates lowered from 13.1% to 12.3% andrental rate growth remains strong. Over the past 12 months,average asking rates have increased nearly 13%. This is ahealthy sign for the Central County submarket, especially incontrast to Orange County's most prominent submarket, the AirportArea, where rental rates are starting to plateau as double-digitrent growth has ticked down to the high single-digits.”

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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 GlobeSt.com 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.