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Market Report

Orange County Office Investment Forecast

2020 Outlook

Limited Supply Additions Hold Office Vacancy Lower; Orange County Offers Investors Diverse Options

 

Lull in development coincides with uptick in office positions. Home to many Fortune 500 companies and a collection of smaller tech, financial service and life science firms, Orange County witnessed the completion of 4.4 million square feet of space over the past three years. The amount of space leased outpaced supply for the first time last year since 2015. In 2020, the number of office positions added will surpass 4,000 amid overall subdued employment growth, helping to place the metro’s office market on firm footing. Expanding companies in need of additional or larger floor plans will be forced to comb the metro’s stock of existing office space, as supply additions are nonexistent this year aside from the conversion of the former Los Angeles Times newsroom off Interstate 405. With a diverse group of firms slated to expand, stable office demand should persist in 2020, equating to a minimal adjustment in vacancy.

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