What Office Types Will be Built?

ORANGE COUNTY, CA—As demand for large blocks of space drives availability in Central and North Orange County lower, will we start to see this type of space come out of the ground? According to Savills Studley‘s Orange County office sector report for Q2, EVP Royce Sharf says, “Development activity is starting to gain some traction as developers respond to demand.” But what type of space can we expect to see being built?

“The next wave of office development activity will be larger, spec-office projects with some level of pre-leasing commitment (other than the Irvine Co., which is planning and building a variety of new projects without preleasing requirements),” Sharf tells GlobeSt.com. “These projects will be next generation with regard to operational efficiency and functionality. We will not see the proliferation of two-story concrete tilt-up that was typical of the last development cycle.”