ORANGE COUNTY, CA—Corporate efficiencies, densification andcaution in a post-recession era are some of the reasons why leasingin the office sector here has remained flat,Royce Sharf, EVP of SavillsStudley, tells GlobeSt.com exclusively. The firm'sthird-quarter research reveals that hiring activity and leasingboth showed little sign of accelerating during the quarter, andavailability actually edged a bit higher. “It remains to be seenwhether expectations of renewed growth in 2015 will come tofruition,” the firm reports.
In fact, the availability rate rose for the first time sinceearly 2010, increasing by 0.1 percentage point to 15.2% during thequarter, according to the firm. The class-A rate fell by 0.3percentage points, though, decreasing to 19.4%. a 1.9percentage-point decline in Central County offset aquarter-on-quarter increase of 0.3 percentage points to 17% inSouth County.
Quarterly leasing volume totaled 2.1 millionsquare feet, increasing by 30.5% from 1.6 million square feet inthe second quarter and exceeding the long-term average of 2 millionsquare feet for the first time since the third quarter of 2012.Class-A activity totaled 1.5 million square feet, up by 50.2% fromthe prior quarter, Savills Studley reports. Asking rents also rose,increasing by 1.9% quarter-on-quarter to $25.77, with a 3.1%increase in the Airport Area to $27.53 and a 1.2% jump to $26.19 inSouth County.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
