O.C. Office Vacancy Rate Posts 10th Quarterly Decline

For the 10th consecutive quarter, the vacancy rate for office space in Orange County has declined, according to a new survey. The percentage of empty office space stood at 9.09% at the end of the second quarter, down from 9.34% in the first quarter and 10.57% a year ago, according to the CB Richard Ellis survey.

With employers adding thousands of new jobs in the sizzling economy, the demand for space is strong, especially in the north and central areas of the county, the firm said.

Rents continued to move up, climbing 4 cents per square foot over the last three months to an average of $1.85 per square foot, the study found. With the market tightening, CB Ellis predicts that the average rate will climb to $1.94 per square foot by the end of the year. As a result, more companies will be drawn to central-area offices, where rates are much lower than coastal and airport-area properties.