OC Office Market Stabilizing
May 17, 2012
The latest research suggests that the Orange County office market has stabilized, although at a point that still favors tenants. That’s the finding of the Orange County Studley Report, real estate services firm Studley’s analysis of office market conditions in the region.
“While minimal new construction and steady leasing activity have made a dent in availability, most tenants still have a wide range of options to consider and significant negotiating power,” said Royce Sharf, executive vice president and branch manager of Studley’s Orange County office. ...
Asking rents trend downward
Overall asking rents declined as compared to last quarter ...
Leasing activity steady
Leasing activity for the first quarter totaled 2.1 msf, with a number of large leases signed as tenants took advantage of favorable market terms ...
Although few landlords have the ability to increase rents and most are still very focused on securing cash flow, a small number have started to step away from lease restructures and early renewals ...
... “Looking forward, some tenants are opting to lock in favorable ‘blend and extend’ leases today, taking advantage of still-advantageous terms and creating a level of certainty as it relates to their organizations ongoing operations and costs,” said Sharf.
... A recent report showed that the FIRE (financial, insurance and real estate) industries still account for the greatest number of office tenants in Orange County, comprising 6,587 firms ...
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