By TED SNELL
Despite a slight dip in activity at the end of 2006, the Orange County office market still is positioned for a positive and exciting year of continued investment, development and leasing activity.
For investors, OC continues to be one of the top three markets for large financial institutions and funds due to the sophisticated employment base, a growing population, quality of life and the entrepreneurial nature of most of the companies here.
OC will continue to be the home of hundreds of headquarters and regional offices for Fortune companies.
Developers such as Parker Properties LP, The Irvine Company, Opus West Corp., Maguire Properties Inc. and Hines Interests LP are banking on the growth of OC companies and the interest from businesses outside the area to fill the estimated 4.4 million of office space set to be delivered from now until 2008.
The desire to relocate in this broad offering of class A and B+ space already has been evidenced by some 2.3 million square feet of pre-leasing.
Pacific Life Insurance Co.’s 242,000-square-foot expansion at Aliso Viejo’s Summit Office Campus was one of the most prominent pre-leases last year. Leasing is expected to remain steady throughout the year and accelerate once buildings get closer to completion and tenants can visualize themselves in these state-of-the-art buildings.
As always, strategically engineered environments and nearby amenities will enhance leasing. In conclusion, we look forward to another strong year for the Orange County office market due to our strong economy, continued job growth and unmatched lifestyle opportunities.
Snell is a senior vice president in the Newport Beach office of CB Richard Ellis.
