Orange County continues to be one of the strongest office markets in the country. According to CBRE Research, the region showed 10.8 percent year-over-year rent growth between Q4 2016 and Q4 2017. Sustained investor confidence, new construction, renovation, and the return of high-quality product across the region all contributed to this increased growth, the company says. After a protracted period of economic expansion, Los Angeles and Orange Counties ranked as the top two markets nationwide for year-over-year rent growth, and Southern California ranked first in CBRE’s Americas Investor Intentions Survey for the past three years.
The report also revealed that Orange County asking lease rates for office space have increased since 2012, surpassing the previous peaks by 3.4 percent. Increased tenant demand for new and renovated class-A office space boosted growth. The 2.5 million square feet of new construction and 900,000 square feet of renovations drove up the average asking lease rate in leading submarket South Orange County by 19 percent from year-end 2016 to $3.08 per square foot per month in year-end 2017.