Commercial Scene : Orange County Office Building May Set Record

Construction of commercial office space in Orange County could hit a record 5 million square feet this year, according to a report by Grubb & Ellis Commercial Real Estate Services.

The absorption rate--which measures how fast space is being rented to tenants--is also expected to remain strong, so vacancy rates are expected to remain at about their current levels.

The report predicts that effective rents in most parts of Orange County will remain flat this year, as tenants have no trouble finding the office space they need. The exception is in the central part of the county, where rents are expected to rise by as much as 15% this year because no new projects will open and the market is already tight.