The North and Central Orange County office market marked a relatively quiet second quarter.
The North-Central OC market includes more than 3,400 commercial properties totaling almost 180 million square feet. Construction of new space in the submarkets remains almost nonexistent, other than 84,350 square feet of industrial space in development.
Demand continued to show positive momentum, as evidenced by the 576,381 square feet of positive net absorption across all product types during the first half of the year.
The office segment saw an uptick in its vacancy rate in the second quarter, rising to 15% from the first quarter rate of 14.9%.
Decreased occupancy can be partially attributed to 21,571 square feet of negative net absorption that occurred this quarter. The average asking lease rate for available space in these submarkets was unchanged at $1.79 per square foot.
The North-Central OC industrial market had a slight uptick in activity during the second quarter with 1.5 million square feet total gross leases and sales, or 24% more than in the first quarter. The submarket had an overall 184,570 square feet of positive absorption.
That led to a decreased vacancy rate that now stands at 2.6%. The average asking lease rate in the manufacturing and warehouse sector moved up 1 cent to 49 cents per square foot, while the research and development segment declined by 9 cents to 62 cents per square foot.
North-Central OC’s retail vacancy rate moved upward to 6.4% with a negative 36,318 square feet of net absorption recorded in the second quarter. The average asking lease rate for retail space added 2 cents, to $2.11 per square foot.
Analysis by CBRE Group Inc.
The Real Estate Watch Chart
Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
