Figures

Orange County Office Figures Q1 2025

April 9, 2025 5 Minute Read

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  • Despite negative net absorption and moderate increases in vacancy in the Orange County (OC) office market, select submarkets with premium Class A+ office buildings, such as South OC and North OC, improved quarter-over-quarter with strong leasing activity and stable asking lease rates.
  • Flight-to-quality remained a staple of the OC market as occupiers migrated to well-located and well-amenitized space.
  • Four of the five OC office submarkets experienced positive absorption, with only the Greater Airport Area (GAA) experiencing negative absorption from large move-outs driven by tenants reducing their footprint and consolidating into smaller spaces.
  • While pockets of strong activity were seen, overall new leasing decreased by 48.9% quarter-over-quarter as only 971,000 sq. ft. of office space leased in Q1 2025. Despite the lackluster leasing volume, rental rates remained stable, only falling by $0.01 to $2.84 FSG per sq. ft. per month.
  • Seven 20,000+ sq. ft. deals in the healthcare, financial services, and the technology sector drove momentum in South Orange County (SOC) and Greater Airport Area (GAA). These transactions buoyed the overall market and added to a positive outlook for the balance of the year.