Strength In OC’s High-Rise Office Market

Strength In OC’s High-Rise Office Market

As 2012 continues to tread forward, industry professionals are happy to see 2011’s year end reports finish with strong absorption numbers; bringing a end to the 15 quarter streak in rental rate decreases. When reviewing Orange County office space for lease, strength in Class A buildings were a strong factor to the positive finish and continue to be a leading player in today’s market.

When examining the push for Class A’s year end popularity, tangible results were shown through a flight-to-quality move which refers to a sudden shift in investment behavior and often found during a period of financial turmoil within an industry. For high-rise Class A buildings, property characteristics offer more attractive amenities either on-site or nearby, have higher quality finishes, and hold a stronger more identifiable location. With this type of office space available, tenants took advantage of the value available for lease causing the strong year end results and the popularity shift for the 2011 high-rise office market.

Reported by the Orange County Business Journal (OCBJ), high-rise office space showed a net absorption of 301,876 square feet during 2011’s fourth quarter, bringing the year-end total to 959,717 square feet. They continued to describe the significant turnaround for the OC Market when compared to 2010’s absorption for high-rise space which previously ended negative at 60,865 square feet.

Additional details regarding Orange County real estate’s high-rise market stated:

  • Submarkets for airport/coastal areas had the strongest net absorption of high-rise space, accounting for 75% of the total with 718,251 square feet.
  • Central Orange County followed next with a net absorption of 124,810 square feet.
  • 2011’s strong absorption had a significant impact on reducing the vacancy rate in high-rise space to 17.4% when compared to 2010’s 21%.

Taking the above information and being able to apply the details to today’s office space for lease takes knowledge, confidence, and skill. ORION Property Partners has years of experience that has triumphed through all top and bottom movements of the market. As leading professionals of commercial real estate in Orange County, their team of Real Estate Brokers are here to guide your property through the trends of today while meeting the foreseen trends of tomorrow. Together, your office space for lease will attain the best possible results while thieving above all others. For ORION, keeping your needs met during the demands of today’s market is the ultimate goal.

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