DEMAND FOR SPACE, LEASE RATES CONTINUE TO FALL IN Q3 The long-running easing trend in overall industrial demand continued in the third quarter as lease rates slipped and countywide vacancy climbed to its highest level since 2011, the aftermath of the Great Recession. Net absorption in the third quarter was negative 850,291 SF. It was the greatest quarterly loss this year and a record 11th straight quarter of tenant contraction, during which the vacancy rate…
Q3 2025 MARKET REPORT – OFFICE
STRONG TENANT DEMAND RETURNS IN THIRD QUARTER Demand for office space returned in the third quarter with one of the strongest three-month periods of net absorption since the 2020 Covid lockdown. Tenant demand increased across four of the county’s five submarkets in the third quarter with net absorption totaling 537,960 SF, reversing most of the recent weakness. Despite its muted office-using payroll growth, Orange County office space continues to outperform many of its urban peers….
Q2 2025 MARKET REPORT – INDUSTRIAL
DEMAND SLIDES FOR TENTH STRAIGHT QUARTER Overall demand for industrial space fell in Q2 for the tenth straight quarter, pushing up the vacancy rate to 6.1% from the 1.8% record low of late 2022. Increased vacancies translate into improved market conditions for tenants with rents falling more than 10% from their recent peak. The reduced demand for industrial space reflects concerns about the impact of tariffs, which were blamed for declines in cargo through Los…
Q2 2025 MARKET REPORT – OFFICE
TREND OF IMPROVING DEMAND PAUSES IN SECOND QUARTER Although there was a healthy level of leasing activity in the second quarter with about 23 full-floor transactions, overall demand for Orange County office space posted its biggest quarterly decline since late 2023. It ended the first positive trend for local landlords since the Covid lockdown. The overall vacancy rate increased 60 basis points in the second quarter to 15.3%, and Class A vacancy ticked up to…
Q1 2025 MARKET REPORT – INDUSTRIAL
DEMAND FALLS FOR NINTH STRAIGHT QUARTER; RENTS OFF 10% Despite decent overall economic growth and healthy levels of trade through the twin ports of Long Beach and Los Angeles, first-quarter demand for Orange County industrial space fell for the ninth straight quarter. Asking rents declined nearly 10% over the period. First-quarter net absorption was negative 626,940 SF. That follows last year’s absorption decline of 5.2 million SF and a 2.6-million-SF contraction in 2023. The countywide…
Q1 2025 MARKET REPORTS – OFFICE
TENANT DEMAND MIXED; AIRPORT, WEST COUNTY SHOW GAINS Demand for office space was mixed in the first quarter as the strong market momentum that closed out 2024 failed to carry over early into the new year. Countywide net absorption in Q1 was negative 86,671 SF on tenant contraction in three of the county’s five submarkets that total 117 million SF. The weakness pushed up the overall vacancy rate slightly to 14.68%. The vacancy rate…