{"id":916,"date":"2023-07-03T11:12:32","date_gmt":"2023-07-03T18:12:32","guid":{"rendered":"https:\/\/www.lee-associates.com\/officeadvisory\/?p=916"},"modified":"2023-10-03T11:16:26","modified_gmt":"2023-10-03T18:16:26","slug":"q2-2023-orange-county-office-market-report","status":"publish","type":"post","link":"https:\/\/www.lee-associates.com\/officeadvisory\/2023\/07\/03\/q2-2023-orange-county-office-market-report\/","title":{"rendered":"Q2 2023 Orange County Office Market Report"},"content":{"rendered":"
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For more information, please contact:<\/em><\/p>\n

MARSHAL J. VOGT
\n<\/strong><\/span>Principal
\n(714) 564-7117
\nBRE #01519213
\nEmail<\/a>\u00a0|\u00a0View Profile<\/a><\/p>\n<\/div>\n<\/div><\/div><\/div>

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MATTHEW ORVILLE
\n<\/strong><\/span>Principal
\n(714) 564-7145
\nBRE #01830994
\nEmail<\/a>\u00a0|\u00a0View Profile<\/a><\/p>\n<\/div>\n<\/div><\/div><\/div>

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JAIMESON HEARNE<\/strong><\/span>
\nPrincipal
\n(714) 564-7146
\nBRE #01925107
\nEmail<\/a>\u00a0|\u00a0View Profile<\/a><\/p>\n<\/div>\n<\/div><\/div><\/div><\/div>

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Occupancy, Values Fall<\/h2>\n

Countywide, vacant space now totals 15.6% of the 117.3-million-SF base and the most since the vacancy rate soared to 20% during the last recession. As hybrid work policies become cultural fixtures for many companies, record volumes of sublet space continue to pile up. At the end of Q2, available second-hand space totaled 4.3 million SF, matching the 18% peak of available space reached in the last recession. The hybrid workweek is having a punishing effect on values as reflected in recently recorded sales in the Airport submarket. Blackstone sold its 560,163-SF, 14-story Griffin Towers at Hutton Centre and six-story garage for $82 million \u2013 36% less than the $129 million paid in 2014 for the twin buildings near the 55 and 405 freeways. The buildings were 88.9% and 62.9% leased. Cress Capital of Newport Beach sold its two eight-story Sandpointe buildings totaling 317,061 SF for $36.3 million, 31% less than when purchased in 2017. The buildings were 68.2% and 59.5% leased.<\/p>\n<\/div>\n<\/div><\/div>

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Market Forecast<\/h2>\n

Orange County job growth will be flat this year and consumer spending will be up 3% -- far less than the annual double-digit pandemic spending, said Chapman University\u2019s Jim Doti in his mid-year economic forecast. Cal State Fullerton economist Anil Puri recently predicted a \u201cgarden-variety recession\u201d later this year.<\/p>\n<\/div>\n<\/div><\/div><\/div>

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\n\t\t\t\t\t\tNEWS & <\/strong>INSIGHTS\t\t\t\t\t\t<\/h3>\n\t\t\t\t\t\t<\/div>\n<\/div><\/div><\/div>