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Market Report

Orange County Office Market Report

2Q 2023

Challenged by Elevated Top-Tier Vacancy,
Orange County’s Office Outlook Remains in Flux

Class A users presented with more options. Orange County entered April with its highest office availability since 2011, a dynamic fueled by the third-largest Class A vacancy rate among major U.S. markets. While top-tier availability sits at 27.4 percent, newer and recently-upgraded properties appear to be gradually adding tenants, with older Class A buildings struggling to secure new leases and renewals. This trend is evident in South County. Here, Class A vacancy fell 110 basis points over the six-month period ending in March, with each of the past four quarters noting positive upper-tier absorption. Highlighting recent commitments, 99 Cents Only Stores leased space at a new campus in Tustin, while Axonics Inc. signed on for 150,000 square feet at an amenitized Irvine Spectrum business park. Should this trend expand to other areas, properties of similar distinction may benefit as the metro’s active pipeline is accounted for.

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