September 16, 2020
Researchers at JLL found that sublease space across Orange County’s office, industrial and flex property types is increasing. In fact, compared to the third quarter of 2019, sublease availability has increased by 29.4%.
So far, sublease availability has increased by 62% since Q2 2019. By comparison, during the Great Recession, sublease availability increased by 175% between Q4 2005 and Q1 2009.
The initial increase was primarily caused by industrial users due to the U.S.-China trade war in the second half of 2019 and then intensified by the onset of the COVID-19 pandemic across property types. Office subleases were significantly low initially and have since increased to account for 44% of total space on the market by square footage and 55% of total number of spaces.
JLL reports that 56% of the sublease space in Orange County has been added in July and August, with office increasing by 70%, and industrial rising by 12%, compared to March through May.
The researchers point out that Orange County’s office sublease inventory remains lower than other west coast markets. Most of the blocks of space are between 10,000 to 20,000 square feet, with no available spaces larger than 70,000 square feet. The tech sector accounts for nearly 50% of sublease space with all availabilities located in the Airport Area and South County submarkets.
For comments, questions or concerns, please contact Dennis Kaiser