The following reflects Orange County office market conditions as of Q3 2026.
MARKET DRIVERS
The Orange County office market is growing, despite fewer new lease agreements, as tenants downsize, sublease, or occupy new spaces, sometimes using a combination of these methods. Landlords are turning suburban office campuses that are less appealing into more financially beneficial commercial purposes or modifying them for more profitable business uses.
In the recent mid-quarter, landlords provided tenants in manufacturing, healthcare, and technology sectors with updated office spaces and lease conditions. These modern spaces were developed with business professionals in mind, aiming to offer contemporary areas for lease.
ECONOMIC REVIEW
Orange County’s diverse economy is experiencing slow growth because of a limited labor supply, with job creation slipping behind the national average. Despite this, the life sciences remain the region’s primary industry, and the healthcare job market is highly competitive.
NEAR-TERM OUTLOOK
Vacancy rates are increasing because of reduced net absorption over the past year. The reduction is driven by the variation in lease rents at different sites. Nevertheless, the market has sustained positive net absorption through the second half of 2026.
Orange County’s economy is projected for slow, steady growth through late 2026 and into 2027, with a stable job market expected. Restricting the construction of traditional office buildings in Orange County is a sensible decision. This approach involves leveraging the campus’s notable amenities and event venues while also reducing overall asking prices.
Frequently Asked Questions
What is the office vacancy rate in Orange County in Q3 2026?
The direct office vacancy rate in Orange County was 11.5% in Q3 2026, unchanged from Q2 2026 and down from 12.3% in Q3 2025, according to Kidder Mathews research. Total vacancy, which includes sublease space, was 12.4%. By region, direct vacancy ranged from 8.0% in North County to 13.9% in South County. (Data source: CoStar)
What is the office availability rate in Orange County in Q3 2026?
The Orange County office availability rate was 14.5% in Q3 2026, down from 15.2% in Q2 2026 and 16.1% in Q3 2025, according to Kidder Mathews research. Class A availability was 20.4%, compared with 11.8% for Class B and 8.8% for Class C. (Data source: CoStar)
How much office space was leased in Orange County in Q3 2026?
Orange County office leasing activity totaled 1,806,198 SF in Q3 2026 and 5,685,110 SF year to date, according to Kidder Mathews research. Among submarkets, Irvine/Tustin Legacy led the quarter with 491,614 SF of leasing activity, followed by Irvine Spectrum with 381,702 SF. (Data source: CoStar)
What was office net absorption in Orange County in Q3 2026?
Orange County recorded positive direct net absorption of 95,112 SF in Q3 2026 and 342,446 SF year to date, according to Kidder Mathews research. Net absorption measures the change in occupied space, so a positive figure means more space was occupied than vacated. Irvine Spectrum posted the largest quarterly gain at 231,850 SF, while the Civic Center Area recorded the largest decline at -234,633 SF. (Data source: CoStar)
What are average office asking rents in Orange County in Q3 2026?
The average office asking rent in Orange County was $2.98 per SF per month on a full-service basis in Q3 2026, up from $2.93 in Q2 2026 and $2.78 in Q3 2025, according to Kidder Mathews research. Submarket averages ranged from $1.66 in Tustin to $3.91 in Newport Beach. Class A space averaged $3.35, versus $2.74 for Class B and $2.55 for Class C. (Data source: CoStar)
How does Orange County office vacancy differ by building class and region in Q3 2026?
Class A office space had the highest direct vacancy in Orange County in Q3 2026 at 15.2%, compared with 10.1% for Class B and 5.8% for Class C, according to Kidder Mathews research. By region, South County was highest at 13.9%, followed by Airport at 12.3%, Central at 10.2%, West at 9.4%, and North at 8.0%. (Data source: CoStar)
How much office space is under construction in Orange County in Q3 2026?
About 178K SF of office space was under construction in Orange County in Q3 2026, according to Kidder Mathews research. The largest project is The Weave @ OCVIBE at 2525 E Katella Ave in Central County, a 168,137 SF development owned by H&S Ventures with delivery expected in November 2028. A 10,000 SF medical office building at 121 E Whittier Blvd in North County, owned by Gire Orthodontics, is scheduled for October 2026. (Data source: CoStar)
What was the largest office sale in Orange County in Q3 2026?
The largest office sale in Orange County in Q3 2026 was Broadcom Five Point Gateway in South County, a 660,893 SF property that sold for $325,000,000, or $491.76 per SF, according to Kidder Mathews research. Broadcom purchased the property from PRP Real Assets. The next largest by price was the 1,054,233 SF Chet Holifield Federal Redevelopment Project, which Hoag bought from US GSA for $207,921,000. (Data source: CoStar)
What was the largest office lease in Orange County in Q3 2026?
The largest office lease in Orange County in Q3 2026 was Alton HQ in South County, where Taco Bell leased 166,761 SF from The Irvine Company in September 2026, according to Kidder Mathews research. The second largest was 96,024 SF at 19-21 Technology Dr in South County, leased by Biosense Webster from The Irvine Company. (Data source: CoStar)
What is the outlook for the Orange County office market in Q3 2026?
Kidder Mathews research projects slow, steady economic growth in Orange County through late 2026 and into 2027, with a stable job market expected. Growth is constrained by a limited labor supply, with job creation trailing the national average, while life sciences remains the region’s primary industry. The office market recorded positive net absorption of 95,112 SF in Q3 2026. (Data source: CoStar, EDD)
Last updated: Q3 2026. Data source: EDD, CoStar. Compiled by the Kidder Mathews Research Group.
Q3 2026 Orange County Office Market: Key Data Points
Explore our full Orange County office market review for deeper insights into leasing trends, sale activity, and submarket performance.
- Direct vacancy: The direct vacancy rate was 11.5%, unchanged from Q2 2026 and down from 12.3% in Q3 2025. Total vacancy, including sublease space, was 12.4%.
- Availability: The availability rate fell to 14.5%, from 15.2% in Q2 2026 and 16.1% in Q3 2025.
- Asking rents: Average asking rent was $2.98 per SF per month on a full-service basis, up from $2.93 in Q2 2026 and $2.78 in Q3 2025.
- Leasing activity: Leasing activity totaled 1,806,198 SF in Q3 2026 and 5,685,110 SF year to date. The largest lease was Taco Bell’s 166,761 SF lease at Alton HQ.
- Net absorption: Direct net absorption was positive at 95,112 SF for the quarter and 342,446 SF year to date.
- Sale activity: Sale volume reached 1,627,202 SF in Q3 2026, led by Broadcom’s $325,000,000 purchase of Broadcom Five Point Gateway at $491.76 per SF.
- Construction pipeline: About 178K SF of office space was under construction, led by the 168,137 SF The Weave @ OCVIBE in Central County, scheduled for delivery in November 2028.
Submarket Statistics
| Submarket | Total Inventory (SF) |
Direct Vacancy Rate |
Total Vacancy Rate |
Total Availability Rate |
Q3 2026 Direct Net Absorption (SF) |
Q3 2026 Total Leasing Activity (SF) |
YTD Total Leasing Activity (SF) |
Q3 2026 Average Rental Rate (FS) |
|---|
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Costa Mesa | 9,247,093 | 10.7% | 11.7% | 14.6% | 96,876 | 165,964 | 477,019 | $3.49 |
| Irvine/Tustin Legacy | 26,676,251 | 13.1% | 13.7% | 17.2% | 35,935 | 491,614 | 1,804,715 | $3.22 |
| Newport Beach | 12,723,014 | 10.0% | 10.4% | 12.2% | 5,125 | 250,774 | 571,267 | $3.91 |
| South Santa Ana | 2,448,498 | 20.9% | 21.1% | 25.1% | -23,697 | 45,515 | 148,067 | $2.60 |
| Airport | 51,094,856 | 12.3% | 12.9% | 15.9% | 114,239 | 953,867 | 3,001,068 | $3.29 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Civic Center Area | 5,668,342 | 10.5% | 10.5% | 5.2% | -234,633 | 6,867 | 23,966 | $2.43 |
| East Orange | 2,139,500 | 3.6% | 3.6% | 4.0% | 1,006 | 25,829 | 45,460 | $2.46 |
| Main Place | 2,831,159 | 9.6% | 10.7% | 13.2% | 12,416 | 10,618 | 73,875 | $3.31 |
| Parkcenter | 4,540,632 | 11.1% | 13.4% | 18.8% | 67,520 | 43,117 | 186,243 | $2.45 |
| Santa Ana | 4,462,434 | 7.9% | 8.3% | 12.8% | -7,527 | 32,389 | 50,036 | $2.53 |
| Stadium Area | 3,776,510 | 13.0% | 13.0% | 17.1% | 16,074 | 34,567 | 142,693 | $2.07 |
| The City | 2,679,123 | 19.9% | 20.1% | 19.5% | -38,111 | 21,891 | 89,124 | $3.07 |
| Tustin | 1,679,360 | 0.7% | 0.7% | 6.1% | -641 | 1,592 | 8,599 | $1.66 |
| Central | 27,777,060 | 10.2% | 10.8% | 12.4% | -183,896 | 176,870 | 619,996 | $2.58 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Anaheim Hills | 1,446,067 | 6.6% | 6.6% | 7.2% | -5,801 | 7,807 | 30,641 | $2.56 |
| Brea/La Habra | 4,398,354 | 13.8% | 14.2% | 17.7% | 32,800 | 18,882 | 111,661 | $2.76 |
| Buena Park/La Palma | 2,270,635 | 8.2% | 8.8% | 9.6% | -17,450 | 9,510 | 34,261 | $2.68 |
| Fullerton | 2,790,275 | 4.2% | 4.3% | 5.0% | -22,073 | 7,427 | 29,522 | $2.64 |
| North/East Anaheim | 5,476,648 | 4.9% | 8.4% | 8.6% | 9,981 | 19,179 | 47,953 | $2.58 |
| Placentia/Yorba Linda | 832,459 | 12.3% | 12.3% | 7.1% | -9,612 | 31,829 | 44,703 | $2.26 |
| North | 17,214,438 | 8.0% | 9.3% | 10.3% | -12,155 | 94,634 | 298,741 | $2.62 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Irvine Spectrum | 15,290,718 | 9.7% | 11.0% | 16.0% | 231,850 | 381,702 | 1,117,733 | $3.06 |
| Laguna Hills/Aliso Viejo | 6,407,826 | 14.3% | 18.8% | 26.8% | 29,021 | 61,000 | 157,902 | $2.75 |
| Laguna Niguel/Laguna Beach | 2,116,758 | 53.7% | 54.0% | 4.7% | -11,050 | 4,822 | 32,312 | $3.02 |
| Lake Forest/Foothill Ranch | 3,460,936 | 14.5% | 14.9% | 24.2% | -73,780 | 42,072 | 114,509 | $2.50 |
| Mission Viejo | 2,296,359 | 13.8% | 14.0% | 16.8% | -7,820 | 14,255 | 80,624 | $2.49 |
| Dana Point/San Juan/San Clemente | 2,468,827 | 5.5% | 6.1% | 7.4% | -2,232 | 12,990 | 56,511 | $2.87 |
| South | 32,875,409 | 13.9% | 15.5% | 17.5% | 165,989 | 516,841 | 1,559,591 | $2.93 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Cypress | 1,783,180 | 22.5% | 22.8% | 20.8% | -1,062 | 28,617 | 75,631 | $2.56 |
| Fountain Valley | 2,400,017 | 4.0% | 4.2% | 4.5% | -197 | 7,273 | 26,739 | $2.27 |
| Garden Grove | 2,155,036 | 6.3% | 6.4% | 8.9% | 2,345 | 1,176 | 7,472 | $2.11 |
| Huntington Beach | 3,093,024 | 11.6% | 13.1% | 14.4% | 14,819 | 10,784 | 44,753 | $2.68 |
| Los Alamitos/Stanton | 1,229,795 | 3.8% | 4.5% | 4.8% | -5,647 | 6,323 | 27,208 | $3.07 |
| Seal Beach | 573,645 | 7.5% | 9.9% | 11.7% | -409 | 2,543 | 16,241 | $3.53 |
| Westminster | 922,591 | 5.7% | 6.6% | 10.3% | 1,086 | 7,270 | 7,670 | $2.82 |
| West | 12,157,288 | 9.4% | 10.1% | 11.0% | 10,935 | 63,986 | 205,714 | $2.61 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Total | 141,224,451 | 11.5% | 12.4% | 14.5% | 95,112 | 1,806,198 | 5,685,110 | $2.98 |
| Submarket | Total Inventory (SF) | Direct Vacancy Rate | Total Vacancy Rate | Total Availability Rate | Q3 2026 Direct Net Absorption (SF) | Q3 2026 Total Leasing Activity (SF) | YTD Total Leasing Activity (SF) | Q3 2026 Average Rental Rate (FS) |
|---|---|---|---|---|---|---|---|---|
| Class A | 49,419,924 | 15.2% | 16.6% | 20.4% | 198,849 | 856,112 | 2,926,975 | $3.35 |
| Class B | 76,548,579 | 10.1% | 11.0% | 11.8% | -39,186 | 847,287 | 2,441,123 | $2.74 |
| Class C | 15,271,308 | 5.8% | 5.9% | 8.8% | -64,551 | 102,799 | 317,012 | $2.55 |
Significant Sale Transactions Q3 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| Broadcom Five Point Gateway | South County | 660,893 | $325,000,000 | $491.76 | Broadcom | PRP Real Assets |
| Chet Holifield Federal Redevelopment Project | South County | 1,054,233 | $207,921,000 | $197.22 | Hoag | US GSA |
| 100 Bayview Circle | Airport Area | 346,335 | $98,000,000 | $282.96 | Greenlaw Partners | Granite Properties, Inc. |
| Tustin Financial Plaza | Central County | 185,000 | $68,675,000 | $371.22 | Taylor Morrison, Inc. | Kingsbarn Realty Capital |
| Orange Center Tower | Central County | 365,701 | $63,125,000 | $172.61 | Global Edge Holding | Lincoln Property Company |
| 14351 Myford Rd | Central County | 147,218 | $37,820,000 | $256.90 | Hines | Link Logistics Real Estate |
Significant Lease Transactions Q3 2026
| Property | Submarket | SF | Transaction Date | Landlord | Tenant |
|---|---|---|---|---|---|
| Alton HQ | South County | 166,761 | September 2026 | The Irvine Company | Taco Bell |
| 19-21 Technology Dr | South County | 96,024 | September 2026 | The Irvine Company | Biosense Webster |
| Plaza Tower | Airport Area | 70,640 | September 2026 | CJ Segerstrom & Sons | Undisclosed |
| Lakeview Business Center | South County | 70,191 | September 2026 | The Irvine Company | DH Dental |
| Innovation Office Park | South County | 32,819 | July 2026 | The Irvine Company | Marsh McLennan Agency |
| UCI Research Park | Airport Area | 31,907 | August 2026 | The Irvine Company | Undisclosed |
Significant Under Construction
| Property | Submarket | SF | Delivery Date | Owner |
|---|---|---|---|---|
| The Weave @ OCVIBE, 2525 E Katella Ave | Central County | 168,137 | November 2028 | H&S Ventures |
| Medical Office Building, 121 E Whittier Blvd | North County | 10,000 | October 2026 | Gire Orthodontics |
Data as of Q3 2026. Source: EDD, CoStar. Prepared by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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