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Orange County office market ends the decade with strong market fundamentals
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Net Absorption
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(61,604) SF |
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*Arrows indicate change from previous quarter.
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HIGHLIGHTS
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Technology firms accounted for 36% of leasing activity in Q4 2019, leasing over 300,000 sq. ft. in OC. The largest deal of 2019 was by computer software company, Alteryx, who moved their headquarters to the Irvine Company’s Spectrum Terrace expanding their footprint to 182,000 sq. ft. Not only was this the largest deal in 2019, it was one of the ten largest deals over the past five years. | | | • |
Creative and high-amenity product outperformed on key indicators as landlords sought to attract and retain tenants and tenants sought to attract and retain talent. Landlords who invested in upgrading their product received a better return on investment and higher occupancy levels. The results were a general improvement to the OC office landscape. | | | • |
The vacancy rate decreased from 10.1% to 9.9% year over year. Approximately 1.3 million sq. ft. of new office product completed construction in 2019, slightly outpacing demand with annual net absorption totaling 901,589 sq. ft. The new product leased quickly due to high-amenity, modern and creative build-outs that catered towards tenants changing needs. | | | • |
Consolidations were on the rise as tenants sought to minimize their real estate footprint. CashCall downsized in Central OC giving up 80,000 sq. ft. at City Tower in Orange and Panasonic consolidated their OC locations and decreased their footprint by 77,000 sq. ft. in Lake Forest. |
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Nicole Moler |
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Field Research Manager
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+1 949 725 8541
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nicole.moler@cbre.com
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Annette Jdanov |
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Sr. Field Research Analyst
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+1 949 725 8691
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annette.jdanov@cbre.com
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