Orange County Office Rent and Vacancy Trends: 2000- 2018

In 2018, average asking rent in the Orange County Office Market reached the highest level on record. In 4Q 2018, the average asking rent was $2.75/SF, up 6.2% over last year and up 1.9% from the prior peak of $2.70/SF in 2007. While the average asking rent continued to climb, the vacancy rate increased 40 basis points from 2017 to 9.9%, as more than 3.9 million square feet of completed construction were added to the market. Most of these deliveries were high-priced class A space. Orange County has historically been a strong office market with a diverse tenant base. Orange County also has the lowest unemployment rate in Southern California. Future growth is expected to moderate due to Orange County reaching full employment in 2018.

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Stay tuned for our 4Q18 Quarterly Outlook reports coming soon.