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OFFICE VACANCY TOPS 20% IN ORANGE COUNTY
At mid-year 2009, the Orange County office market continued to see weakening fundamentals with -612,700 SF of net absorption. This resulted in a 70 basis point increase in the total vacancy rate from 19.5% reported in Q1 to 20.2% in Q2. Combined with direct average asking rents dropping to a 3-year low of $2.37 per square foot, per month Full Service Gross (FSG), it appears that the Orange County office market has yet to stabilize.
Although no new square footage was delivered this quarter and only 80,500 SF is currently underway, there is so much excess supply on the market from the construction boom of the last 3 years that it will probably take several years for this office space to be absorbed. On the other hand, for
those few tenants in the market for space and confident in their business over the next few years, current market conditions offer a golden opportunity to lock in under market rental rates for the long-term.
Contact Michael Soto at 213.532.3220 for more information.
  OFFOC09Q2.pdf
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