Office Footprints Continue to Shrink
In view of the strong job growth since the pandemic, historical patterns dictate that office demand would have rebounded by now. Increased demand for space has decoupled from employment gains with corporate users succumbing to hybrid work schedules and reducing their office footprints. OC employers cut 153,800 workers in 2020, but 162,300 positions were added since. However, tenants shed a record amount of space in the first quarter, affirming that the lingering impact of post pandemic workplace arrangements has yet to play out.
Orange County business executives who believe business activity will remain unchanged in the second quarter increased to 42.4% from 31.3%, according to the OC Business Expectations Survey by the Cal State Fullerton economist Anil Puri.