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Orange County Office Market Report

2nd Quarter 2019

Posted In — Market Research | Market Report

The Orange County office market remains on firm footing in 2Q19 as office demand continues to increase in lock-step with the steady influx of new supply. Direct net absorption this quarter experienced a rebound from the slow start in 1Q19, asking rental rates continue to record post-recession highs, and vacancies remained relatively stable. In addition, sales transaction volume more than doubled from last quarter, as investors continue to trade trophy properties and office campuses throughout Orange County. Currently the unemployment rate sits at 2.4%, 110 basis points (bps) lower than the state’s average of 3.5% and 100 basis points (bps) lower than the national average, respectively. According to the State of California’s Employment Development Department, total nonfarm employment increased by 18,600 jobs year over year, or 1.1% growth between May 2018 and May 2019. With healthy demand fundamentals in place, we can expect stable supply and demand growth in the Orange County office market to remain steady throughout 2019.

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