May 17, 2017 Comments Off on California’s Most Affordable Office Market is Orange County Views: 578 California News, Orange County

California’s Most Affordable Office Market is Orange County

Research by JLL reveals Orange County’s office occupancy costs are actually more affordable than California’s major tech markets of Silicon Valley, San Francisco, West Los Angeles and San Diego.

JLL’s Jared Dienstag says, “Orange County has a strong tech ecosystem that continues to expand. Tech firms have a large labor pool of STEM graduates in Orange County to build companies, while also saving considerably on operating costs. This enables companies to make a dollar go a longer way than other more expensive California markets.”

JLL’s key office cost findings include:

Average Class A Office Rents

  • Orange County $36.48
  • Silicon Valley $49.39
  • West LA $56.99
  • San Francisco $75.18

Year One Rent Total

  • Orange County $729,600
  • Silicon Valley $987,800
  • West Los Angeles $1.1M
  • San Francisco $1.5M

Total Out of Pocket TI Costs

  • San Diego $3M
  • Orange County $3.3M
  • San Francisco $$3.8M
  • Silicon Valley $4M

Total Costs: includes rent, out of pocket costs, employee wages

  • Orange County $76.9M
  • San Diego $79.5M
  • West LA $85.4M
  • San Francisco $129.2M
  • Silicon Valley $160.8M

* Based on 20,000 square feet of office space, 134 employees (150 square feet per employee) and a five-year lease with 3% annual rent increases

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For comments, questions or concerns, please contact Dennis Kaiser

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