Office Space Vacancy Rate Declines in Orange County
The vacancy rate for commercial office space in Orange County dropped from 23% to 20% during the first quarter of 1986, according to a study released by the Newport Beach office of Grubb & Ellis.
Michael R. Dorsey, vice president/sales manager of the Newport Beach branch, said the building-by-building survey showed 4.6 million square feet vacant in the existing base of 23.2 million square feet.
Net absorption was 1.2 million square feet in the first three months of this year and only 276,000 during the same period last year.
“The dip in vacancy rates and increased absorption is the result of a strong economy, lower interest rates and pent-up demand among tenants who had postponed expansion and relocation plans from last year to 1986,” Dorsey said.
“However, everyone should understand that, despite this high absorption, overall vacancy rates will again rise over the next six to 12 months as new buildings come on the market.”
He also noted that the survey showed the Central County region, including the Anaheim Stadium area, emerging as a rival to the John Wayne Airport region in terms of first-quarter growth. The largest gain in occupied space proportionate to market size was found in the North County area.