Office Investment Jumps 130% in Orange County

Orange County office investment activity ramped up in the third quarter. According to a new report from Yardi Matrix, office investment activity increased 130% in the third quarter, and the market accounted for three of the top office transactions in Southern California. The growing economy and expansion of local employers helped to drive the growth in the office market, making for nearly the strongest investment market this cycle.

“The Orange County office market grew at a healthy pace in the third quarter, based on the strength in the economy as employers continue to expand,” Doug Ressler, director of business intelligence at Yardi, tells GlobeSt.com. “We see growth is stronger than it has been in nearly a decade.” Ressler adds that Orange County is the most “dynamic business sector office market in the L.A. Basin.”

While investment activity has increased, Ressler was still cautious about the future of investment growth. “The office market is at risk because the SoCal area employment is significantly below the national average,” he says. “The pace of expansion is still considerably slower than in past times of economic growth, and co-working density maximize space but hinders new development.”