Office Vacancy Rate Takes Big Jump in County

Orange County’s office market had one of the nation’s biggest jumps in vacancy rates during the third quarter, the Coldwell Banker real estate brokerage reported Monday.

The local office vacancy rate rose to 21.8%, from a rate of 20.5% in the second quarter. That was the fifth-highest increase among metropolitan areas in the nation, the brokerage said.

Other large metro areas with big jumps were Long Island, which rose from 19.1% to 21.3%; and Cincinnati, which went from 15.8% to 17.5%.

While brokerages such as Coldwell Banker report that demand continues to be strong for office space in Orange County, so much space was built in the 1980s that millions of square feet remain vacant.

Office vacancy rates in suburban markets such as Orange County have been higher on the average than downtown rates, since the suburbs are where much of the office construction took place in the last decade.

The national average for vacancy rates in suburban markets was 20.5% during the third quarter, down from 20.8%. That means Orange County isn’t that far above the average. Downtown rates were unchanged at 17%.

The highest rates are: Stamford, Conn., 29.9%, and Palm Beach County, Fla., 28.7%.