Orange County Office Market Report

Growing STEM industries driving Orange County’s office market. As one of only 12 U.S. metros where vacancy will land roughly 100 basis points below long-run levels, the metro benefits from a diversifying economy anchored by defense, hardware, and advanced research. Anduril is rapidly expanding around its Costa Mesa headquarters, and Hyundai is enlarging its countywide presence. With most deliveries tied to the Advantech North America campus this year, overall supply pressure will remain subdued. These corporate expansions have been particularly impactful among Class A properties, where vacancy declined roughly 300 basis points year-over-year in late 2025, making Orange County one of only six major U.S. metros to post such gains. Looking ahead, tailwinds in defense and hardware, combined with the University of California, Irvine’s rising STEM reputation and industry-focused research, should continue to support office space demand. With roughly 20 percent undergraduate growth over the last decade and recognized strength in social mobility, UCI is positioned to supply a steady stream of highly skilled talent to support the metro’s white-collar workforce.