Mid-Rise Product Leads Office Leasing in OC

Mid- and low-rise product led office leasing activity in 2019. According to a report from JLL, the volume of mid- and low-rise office leases greater than 30,000 square feet was greater than high-rise product by a ratio of six to one. The surge in office leasing activity for this product segment is largely attributed to new construction activity.

“We are seeing a lot of activity in the new buildings,” Jeff Ingham, senior managing director at JLL, tells GlobeSt.com. “Clients today on the office side are very much looking for the new latest and greatest projects that have all of the amenities and indoor-outdoor space. Those are the things that are really attractive to employees and drive retention.” Three major mid- and low-rise properties came to the market this year, including Spectrum Terrace from the Irvine Co. and Boardwalk.

Tech companies and medical companies are leading the leasing activity in mid-rise office space. These companies are expanding and leading demand in general in the market, and they gravitate toward mid-rise and low-rise assets. “If you look at the groups that are leasing low rise space, the bulk are tech, medical device and life science-type companies,” says Ingham. “There has also been a lot of demand in co-working as well. Our local market growth is also in those three categories. Most traditional office companies, on the other hand, are getting more efficient with their space.”