March 6, 2017 Comments Off on How Much Have OC Office Rents Grown? Views: 340 California News, Orange County

How Much Have OC Office Rents Grown?

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.

Read more at JLL Research

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For comments, questions or concerns, please contact Dennis Kaiser

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