For the first time in over four years, the quarterly vacancy rate for Orange County office space dropped as a result of a decrease in new available space but overall leasing activity actually declined. The percentage of space available for rent was down by nearly 5 percent from its peak in 2009 to 21.8 percent.

The best analogy for the contrasting data is to go back to January when GDP growth hit 5.7 percent based on an inventory slowdown. Orange County saw a decline in vacancy rates by 0.4 percent but it was still 1.3 percent higher year-over-year. Leasing activity in Q3 fell by 100,000 square feet compared to Q2 data.

As a result of continuing weakness in the market, rents fell and were down more than 10 percent year-over-year.

Best performing communities (based on vacancy rate):
- Dana Point, La Habra and Fullerton

Worst performing communities (based on vacancy rate):
- Foothill Ranch, Anaheim Hills and Placentia