Orange County’s 2011 Office Market Ended With Optimism
Despite the constant instability over California’s residential housing crisis and the possible affects of it continuing to pour over into the field of commercial real estate, Orange County’s office space for lease has shown a recent break in the fifteenth-quarter run of decreased lease rates. Though the report indicates a positive turn in office lease rates, the road ahead is still projected to be a slow one.
Signs of the slow but steady market are seen in the stabilization of lease rates across the office market, as well as the continuation of positive absorption rates shown. Reported on January 28th, 2012 by the Orange County Business Journal (OCBJ), records indicated that, “the office market recorded about 1.9 million square feet in net absorption for the year;” with Class A buildings in and near the Greater Airport Area, along with the Central OC Submarkets, Orange County’s office market for 2011 ended with higher amounts of optimism than originally anticipated.
In other records stated by the OCBJ regarding the Orange County market, vacancy rates were found to drop to 15.3%, while construction activity increased, showing a consistent asking rate of $1.94 for the office market. OCBJ also stated that, “vacancies in Class A properties dropped to 17.1%, while Class B fell to 13.6%. Class C properties saw an increase to 14.6% in the fourth quarter.”
Though 2011’s end of year review ended with various positives, many still are weary and want to know if the positive signs will continue to grow and strengthen over upcoming months in Orange County’s office market…
For ORION, informational sources are pulled from multiple areas and brought together as one to help observe, analyze, and forecast for intellectual indications regarding future positive and/or negative outcomes. Working with the ORION team, both tenants and property owners are provided with all the information needed for a successful move forward. Real estate in Orange County has various elements and variables that both lift if up as one of the leading commercial real estate markets in Southern California, as well as cause a few turns and movements. With ORION’s team of commercial real estate brokers, you will know the adjustments of the market; how to prepare for them, and how to succeed through them.