July 7, 2016
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Kidder Mathews’ Q2 2016 Orange County office report reveals that the market continued to improve, posting just more than 131,000 square feet of positive net absorption for the quarter. This marked the ninth consecutive quarter of positive net absorption, and the twelfth consecutive quarter of rising lease rates.
The average asking full-service gross lease rate finished the second quarter at $2.32, an increase of sixteen cents or 7.41% from 2015’s Q2 average asking rate.
Kidder Mathews’ Jerry Holdner says one notable trend is the increase in construction. “The rise in lease rates demonstrates that the market continues to improve and supports the new construction we are seeing in the southern part of the county.”
Total space under construction came in at just over 2.4 million square feet. Construction is expected to increase in the coming quarters, as typically the cranes come out when vacancy dips below 12%. Currently, vacancy is 10.4%.