IRVINE, CA—Developers previously stung by therecession continue to approach the Orange Countyoffice market cautiously to avoid overbuilding,causing vacancy to tighten further in the region, ColliersInternational's regional director for Orange CountyRobert Caudill tells GlobeSt.com. We spokeexclusively with Caudill and Colliers' western regional presidentMartin Pupil about the state of the Orange Countyoffice market.

According to the latest quarterly research report issued byColliers, of which GlobeSt.com has obtained an exclusive preview,vacancy rates continued to decline and net absorption postedpositive gains for the sixth straight period as those two majormarket indicators remained in lock-step during the third quarter,again underscoring the growing strength of Orange County's officemarket and signaling what could be the largest cycle of new officeconstruction since the recession. Vacancy ratesdropped nearly a full percentage point, or 90 basis points, overthe previous quarter to 12.6%, the lowest level recorded in 18months and the sixth consecutive quarter of vacancy-rate declines.Total net absorption remained positive for the sixth straightquarter, as well, totaling 688,800 square feet, with a year-to-datetotal of nearly 1.1 million square feet.

Pupil tells GlobeSt.com, "As market conditions continue toimprove in Orange County, with vacancies declining and demandsoaring, we are at the beginning of a cycle that could result inthe most prolific period of new office construction since at leastthe beginning of the Great Recession and perhaps even longer. Withfew exceptions, we are seeing positive indicators here and in allof the office markets under my purview throughout the West."