X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORANGE COUNTY, CA-Activity in the Orange County office market is beginning to drop off, as recent research points to negative net absorption, a rise in vacancy levels and a decrease in new construction at the end of the third quarter.

Third quarter 2001 brought a negative net absorption of 403,000 sf to the office market here, as reported by Delta Associates Inc., an affiliate of Chicago-based property giant Transwestern Commercial Services. This figure illustrates a significant drop from second quarter 2001, when the market experienced a positive net absorption of 564,000 sf.

Meanwhile, vacancy levels are on the rise. The direct vacancy rate here jumped from 10.3% at mid-year to 11.1% at the end of the third quarter, while the direct Class A vacancy rate rose from 12.5% to 14.3%.

As vacancy levels have risen, construction of new office projects here has slowed to a virtual standstill. “No significant construction began in the third quarter of 2001 in Orange County,” the Delta report says. “In fact it appears that construction was halted in some cases.

“As we head into the fourth quarter, the September 11th attacks could ironically prove helpful to the county’s office market. “We expect modest, positive impact on the LA/Orange County office market from ‘the war on terrorism,’” the report adds.

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

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

  • Free unlimited access to GlobeSt.com'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 ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.