March 6, 2017
Orange County’s office market rents have climbed dramatically over the past three years. In fact, total rent growth for the county was 31.4%, and three of the five main submarkets experienced double-digit rent growth since 2010. Two others were just shy of 10% increases, according to a new report from JLL Research.
Ranking OC Rent Growth by Submarket
- Airport Submarket 47.6% growth
- South County Submarket 39.4% growth
- North County Submarket 13.8% growth
- Central County Submarket 9.7% growth
- West County Submarket 8% growth
Key findings of the report include:
- Airport submarket surpassed 2007’s peak average asking monthly rental rate ($3.02 per-square-foot) in Q4 2016, with a rent of $3.06 per-square-foot.
- West County recorded lowest rent growth since 2010, mainly because submarket is not as susceptible to cyclical fluctuations as most other submarkets.
- Current average rent for the total Orange County market of $2.68 per-square-foot is only 2.2% off 2007 peak rent of $2.74 per-square-foot.
- Strong job growth from startups and mature companies is a key factor driving demand.
For comments, questions or concerns, please contact Dennis Kaiser