X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ANAHEIM, CA-Orange County’s office market absorbed more than 830,000 sf of space in the second quarter, double the first-quarter absorption, according to a new report from Voit Commercial Brokerage, and average asking rates ticked up for the second consecutive quarter.Jerry Holdner, Voit VP of research and author of the report, tells GlobeSt.com that the county’s office market of nearly 97.3 million sf could be headed for one of its best performances in the pastsix years, a total of about 2.4 million sf of space absorbed, if absorption continues at this rate for the rest of the year. The year 2000 marked the peak of the past six years, with absorption of 3.6 million sf. The office market then lapsed to 775,000 sf of absorption in 2001 and 1.5 million sf in 2002 before rebounding last year with 3 million sf of absorption. Although 1999′s total was thelowest in the last six years, 100,000 sf, Holdner tells GlobeSt.com that the 1999 figure is misleading because little or no space was available in 1999 even though demand was strong. The slight uptick in average asking lease rates to $2.01 from last quarter’s $2 is also an indicator of a strengthening market, Holdner says, noting that although the increase in the second quarter was only about a penny, it followed a one-cent increase in the first quarter that marked the first quarterly rise in asking rates in two years.Holdner notes that much of the action in the office market is in the airport area submarket, which has accounted for nearly 1 million sf of the 1.2 million of net absorption in the county for the firsttwo quarters. The strong absorption has pushed the availability rate down to just under 12.9%, including both direct and sublease space, compared with an availability rate of more than 15.6% in the second quarer of last year.

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.