ORANGE COUNTY, CA-Opportunities for office investment exist in Orange County, and the region is a growth market. So said Kevin Shannon, vice chairman and managing director for CBRE, in a video from Allen Matkins“View From the Top” conference held recently in Los Angeles.

Shannon opined that while core deals are desirable, the cycle is fairly mature, so investing in regions where the money hasn’t hit yet is wise. “It’s time to move into the markets that haven’t moved yet,” said Shannon. “I think there are opportunities in Orange County, and I think Orange County is going to come back strong. There are some interesting plays there.”

Orange County, along with Phoenix, is one of the 15 top markets for office absorption, Shannon added, which makes it a good prospect for investors.

In addition, suburban office is a “smart play,” Shannon said. “Last year, I said people should buy suburban office, and that would have been a great time to put that strategy to work. Still, on a yield risk-adjusted basis, I think suburban office is a great play.”

While the recovery is slower than we’re used to, it’s still a recovery, and overbuilding isn’t a factor in most markets, Shannon added. He said that next year will be better, although “steady as she goes” and not a dramatic movement up. “Interest rates might be a little higher, but rent growth will more than offset the increase in interest rates.”

To view the complete video, click here.

As reported in May, the sale of the iconic Clock Tower building in Los Angeles is yet another example of west side creative office space commanding a premium price, according to Shannon.